IRS Notice on SE Tax for CRP Payments

Abstract

<p>The uncertainty in handling conservation reserve program (CRP) payments existing since 2003<strong>1 </strong>has been partially reduced, in a manner adverse to taxpayers, by the issuance of <em>Notice 2006-108 </em>in early December, 2006.<strong>2 </strong>The Internal Revenue Service response to the controversy was to – (1) issue <em>Notice 2006-108</em>;<strong>3 </strong>(2) announce that a revenue ruling is forthcoming; (3) obsolete <em>Rev. Rul. 60-32</em>,<strong>4 </strong>a key ruling in this area for nearly 50 years; and (4) invite comments on the Notice through March 19, 2007.</p>