What SCHEDULE F (Form 1040) (2010) Is For

Schedule F (Form 1040) is used to report profit or loss from farming operations. Sole proprietors, single-member LLCs, and certain partnerships, estates, and trusts who cultivate, operate, or manage a farm for profit must file this schedule with their Form 1040, 1040NR, 1041, 1065, or 1065-B (Instructions for Schedule F, 2010).

The form calculates your net farming profit or loss by reporting income from selling crops, livestock you raised, government payments, cooperative distributions, and crop insurance proceeds, then subtracting ordinary and necessary farm expenses such as feed, fertilizer, labor, and equipment depreciation.

When You'd Use SCHEDULE F (Form 1040) for 2010 (Late or Amended Filing)

You would file Schedule F for the 2010 tax year as a late or amended return if you never filed an original return for that year, need to correct farming income or expenses previously reported, or received an IRS notice indicating missing or incomplete filing.

Common Scenarios

• Discovering unfiled returns during mortgage applications.
• Responding to CP2000 notices showing unreported farm income from Forms 1099-G or 1099-PATR.
• Correcting material errors in crop insurance deferral elections or CCC loan reporting.

Refund and Payment Deadlines

For refund claims, you generally must file within three years from the original April 15, 2011 deadline (by April 15, 2014) or within two years from when you paid the tax, whichever is later (IRS Publication 556).

If you owe taxes for 2010, filing late still requires paying the balance due plus:

• Failure-to-file penalties (5% per month up to 25% of unpaid tax)
• Failure-to-pay penalties (0.5% per month)
• Accumulated interest

Penalties may be abated for reasonable cause (IRS Publication 225).

Key Rules Specific to 2010

The 2010 tax year featured several provisions that differ from current rules.

Section 179 Deduction

Farmers could expense up to $500,000 of qualifying property with a phaseout starting at $2,000,000 in total purchases. Qualified real property (like drainage tile installations) could qualify for up to $250,000 of deductions.

Bonus Depreciation

The special first-year depreciation allowance remained available for eligible property placed in service in 2010.

Business Mileage and Health Credits

• The business standard mileage rate for 2010 was 50 cents per mile.
• The Small Employer Health Insurance Premium Credit under the Affordable Care Act became available for the first time in 2010 and affected deductions on line 17.

Start-Up Cost Deduction

Farmers with new businesses could deduct up to $5,000 (or $10,000 for 2010) of start-up expenses, amortizing the rest over 180 months.

Step-by-Step (High Level)

Step 1: Request IRS Transcripts

Order your 2010 Wage and Income Transcript and Account Transcript via IRS.gov Get Transcript Online or call 1-800-908-9946. These reveal income documents (Forms W-2, 1099-G, 1099-PATR, 1099-MISC, CCC-1099-G) for reconciliation.

Step 2: Gather Farm Records

Collect all 2010 receipts, invoices, and bank statements for:

• Crop and livestock sales
• Government payments
• Cooperative distributions
• CCC loan documents

Include deductible expenses like feed, fertilizer, veterinary costs, fuel, labor, depreciation schedules, and mileage logs.

Step 3: Complete the 2010 Schedule F

Download the correct-year form from IRS.gov/prior-forms.
Use Form 1040 (2010)—not the current version—to ensure proper tax rates and credits. Attach relevant schedules:

• Schedule SE (self-employment tax)
• Form 4562 (depreciation/Section 179)
• Form 4797 (livestock sales)

Step 4: Attach Explanation Statement

• For late returns, write “Filed Pursuant to IRC Section 6072” at the top of Form 1040.
• For amended returns, use Form 1040X and attach the corrected Schedule F with a detailed explanation.

Step 5: Mail to the Correct IRS Address

E-filing isn’t available for returns this old. Use the 2010 Form 1040 instructions to find the correct IRS address.
Mail via certified mail with return receipt for proof of filing.

Step 6: Keep Complete Copies

Retain copies of:

• Filed return and all schedules
• Supporting documentation
• Mailing and payment proof

Keep for at least seven years (IRS Publication 583).

Common Mistakes and How to Avoid Them

Reporting Raised Breeding Livestock on Lines 1–2

Sales of raised breeding or dairy animals belong on Form 4797, not Schedule F lines 1–3. Only report purchased livestock held for resale or raised animals sold for slaughter on those lines.

Failing to Reconcile CCC Loan Elections

If you elected in prior years to report CCC loans as income, do not double-report gains when forfeiting or repaying loans. Unreported loans require including the market gain on line 6b.

Incorrect Crop Insurance Deferral Elections

You may defer 2010 crop insurance proceeds to 2011 only if damage occurred in 2010. This election must typically be attached to a timely filed return; consult a tax professional for late filings.

Deducting Prepaid Expenses Beyond 50% Limit

Prepaid supplies (feed, seed, fertilizer) exceeding 50% of other deductible farm expenses must be deferred to the year consumed, unless exceptions apply.

Mixing Personal and Farm Expenses

Only deduct the business-use percentage of mixed-use assets (vehicles, utilities, phones). Keep detailed records and logs.

Overlooking Depreciation and Section 179 Limits

Attach Form 4562 when claiming depreciation or Section 179. Missing or incomplete records can result in disallowed deductions.

What Happens After You File

The IRS generally processes late or amended returns within 8–12 weeks (sometimes up to 16).

IRS Notices and Adjustments

You may receive:

• CP10, CP11, CP12, or Letter 12C for adjustments or balances due.

Interest and penalties accrue from April 15, 2011, until full payment.

Payment and Collection Options

If you owe taxes:

• Apply for an installment agreement using Form 9465 or IRS.gov/payments.
• Fees and interest apply until fully paid.
• Refunds may be offset against federal or state debts, child support, or student loans.

If you disagree with proposed changes, you can appeal using Form 12203 (IRS Publication 5). For significant debts, consider professional help for Offer in Compromise or Currently Not Collectible status.

FAQs

If I haven't filed my 2010 Schedule F yet, can I still get a refund?

Likely not. The refund window expired on April 15, 2014 (three years after the original due date). Even so, filing is recommended to maintain compliance and resolve potential IRS records of unreported income.

What penalties apply if I file Schedule F for 2010 late with a balance due?

• Failure-to-file penalty: 5% per month (up to 25%)
• Failure-to-pay penalty: 0.5% per month (up to 25%)
  Interest compounds daily.
  You may qualify for First-Time Penalty Abatement if you had a clean filing history for the prior three years.

Do I need IRS transcripts before filing a late 2010 Schedule F?

Yes—strongly recommended. The Wage and Income Transcript lists all income forms (1099s, W-2s) on record, and the Account Transcript shows payments and assessments. This prevents mismatch notices like CP2000.

Can I e-file a late 2010 Schedule F or must I mail it?

E-filing isn’t supported for 2010 returns. You must mail a paper copy of the completed Form 1040 and Schedule F to the IRS, using certified mail for proof of filing.

If I amend my 2010 Schedule F, do I need to amend my state return too?

Yes. Most states require an amended state return if your federal income changes. Check your state’s Department of Revenue for the proper form and deadlines.

What if my 2010 farming activity showed losses—can I still deduct them now?

Possibly, but subject to passive activity and at-risk loss rules (IRC Section 469). Loss carrybacks or carryforwards may be limited by the statute of limitations.

Does filing a late 2010 Schedule F affect my Social Security or Medicare credits?

Yes. Schedule F profit determines your self-employment income reported on Schedule SE, which affects your Social Security credits.
However, the correction period for earnings records (3 years, 3 months, 15 days) likely expired for 2010. Contact SSA at 1-800-772-1213 to confirm your record.