What SCHEDULE F (Form 1040) (2011) Is For

Schedule F (Form 1040) is used to report income and expenses from operating a farm as a sole proprietor (IRS Instructions for Schedule F, 2011). If you cultivate, operate, or manage a farm for profit—whether as owner or tenant—and your farming activity generates income from selling livestock, produce, grains, or other products you raised or purchased for resale, you must file Schedule F with your Form 1040 (IRS Publication 225, 2011).

This schedule calculates your net farm profit or loss, which then flows to your main tax return and may be subject to self-employment tax.

When You'd Use SCHEDULE F (Form 1040) for 2011 (Late or Amended Filing)

You would file a late or amended 2011 Schedule F if you never filed your 2011 return, received IRS notices about unfiled years, owe additional tax after discovering unreported farm income, or need to correct errors on your original return.

Common scenarios include receiving CP59 or CP515 notices demanding a return, discovering W-2s or 1099s you forgot to report, or realizing you claimed incorrect deductions.

If you're filing late and expect a refund, be aware that the IRS generally must receive your claim within three years from the original April 15, 2012 due date (or by April 15, 2015 for 2011 returns) to issue a refund (26 U.S. Code § 6511).

Late filers with a balance due should file immediately to stop penalties from accumulating—the failure-to-file penalty is 5% of unpaid tax per month, up to 25%, and interest accrues continuously (26 U.S. Code § 6651).

Key Rules Specific to 2011

The 2011 Schedule F introduced new “specified” income lines (1a, 2a, 7a, 8a, 37a, 42a, 43a) to track merchant card and third-party network payments like credit cards and PayPal; however, the IRS deferred this reporting requirement for 2011, so taxpayers must enter zero on these lines and report all income on the “b” lines instead (IRS Instructions for Schedule F, 2011).

For 2011, the standard mileage rate for business vehicle use was 51 cents per mile before July 1, 2011, and 55.5 cents per mile after June 30, 2011.

Farmers who received Commodity Credit Corporation (CCC) loans in 2011 and elected to report loan proceeds as income must attach a detailed statement to their return (IRS Publication 225, 2011).

Additionally, farmers eligible for income averaging under Schedule J could spread farm income over the previous three years to potentially reduce their tax liability (IRS Instructions for Schedule F, 2011).

Step-by-Step (High Level)

Step 1: Gather Your Documents and IRS Records

Request a wage and income transcript for 2011 from the IRS (online at IRS.gov/Transcripts or by calling 1-800-908-9946) to verify all Forms W-2, 1099, and other third-party reported income before preparing your return.

Collect all farm income records (sales receipts, cooperative distributions, government payments, CCC loan documents) and expense receipts (feed, fertilizer, supplies, veterinary, fuel, repairs, insurance, depreciation records).

Step 2: Complete the Correct-Year Schedule F (2011)

Download the 2011 version of Schedule F and its instructions from IRS.gov (IRS.gov/pub/irs-prior/f1040sf--2011.pdf).

Fill in all required information including:

• Principal crop or activity code from Part IV
• Accounting method (cash or accrual)
• All farm income and expenses using 2011 rules

Important: Enter zero on the new “specified” lines and report all income on the “b” lines.

Step 3: Attach Required Schedules and Forms

Include:

• Schedule SE (Form 1040) if subject to self-employment tax
• Form 4562 if claiming depreciation or Section 179
• Form 4797 for sales of farm equipment or breeding livestock
• Schedule J (Form 1040) if electing income averaging

Late returns must be mailed; e-filing is not available for prior-year forms.

Step 4: Mail Your Return With Payment (If Owed) and Keep Copies

Send your completed 2011 Form 1040 package to the IRS address listed in the 2011 instructions for your state.

If you owe tax, include full payment or file Form 9465 (Installment Agreement Request) if you cannot pay in full.

Use certified mail with return receipt and keep all copies and proof of mailing for at least seven years.

Common Mistakes and How to Avoid Them

Mixing Current-Year and Prior-Year Forms

Always use the exact form version for the tax year you're filing—Schedule F (2011), not the current version.

Forgetting to Report All Income Shown on IRS Transcripts

Request your 2011 wage and income transcript to ensure all income reported to the IRS is included; mismatches can trigger IRS notices and penalties.

Misreporting the 2011 “Specified” Income Lines

For 2011 only, lines 1a, 2a, 7a, 8a, 37a, 42a, and 43a must show zero because merchant card reporting was deferred; report all income on “b” lines.

Claiming Personal Expenses as Farm Expenses

Deduct only expenses directly related to your farming business. The IRS scrutinizes Schedule F deductions carefully.

Capitalizing Costs Incorrectly or Missing Depreciation

Depreciate equipment, livestock, or improvements using Form 4562; do not fully expense capital assets.

Not Keeping Adequate Records

Maintain receipts, invoices, mileage logs, and bank statements for all income and expenses. Lack of records can lead to disallowed deductions and penalties.

What Happens After You File

Processing Timeline and Notices

Late paper returns usually process within 6–8 weeks, but older-year filings can take longer. The IRS will send a notice confirming processing and showing any balance due or refund amount.

Refunds filed after April 15, 2015 (three years after 2011’s due date) are time-barred.

Penalties and Interest

• Failure-to-file penalty: 5% per month (max 25%)
• Failure-to-pay penalty: 0.5% per month (max 25%)
• Interest compounds daily from the original due date.

Penalty abatement may be available for reasonable cause or first-time abatement if you had a clean record for the past three years.

Payment Options If You Owe

If you cannot pay in full:

• Request an Installment Agreement via Form 9465 or the IRS Online Payment Agreement tool.
• Consider an Offer in Compromise if you qualify based on financial hardship.
  Ignoring your balance can lead to liens, levies, or passport restrictions.

Appeals Rights

If you disagree with an IRS determination, you can:

• Call the number on your notice, or
• File Form 12203 (Request for Appeals Review) within 30 days.

Appeals provide an independent review before enforced collection.

FAQs

If I file my 2011 Schedule F late in 2025, will I still get a refund?

No. The refund statute expired April 15, 2015. Refunds can no longer be issued, but filing still establishes compliance and prevents further issues.

How much are penalties and interest on a late 2011 return?

Expect combined penalties and interest of 50% or more of the original tax owed. Penalties accrue monthly, and interest compounds daily from April 15, 2012.

Do I need IRS transcripts before filing a late 2011 Schedule F?

Yes. Request your 2011 wage and income transcript to confirm all income reported to the IRS before filing.

Can I e-file a late 2011 Schedule F?

No. The IRS only accepts e-filed returns for the current and prior year. 2011 returns must be mailed using certified mail.

Should I amend my state farm return if I file or amend my 2011 Schedule F?

Yes. If your state has income tax, amend your 2011 state return as well, since it typically starts with federal AGI.

What if I never received Forms 1099 for my 2011 farm income?

You must still report all income, even without 1099s. Use your own records and IRS transcripts to reconstruct income.

Can I request penalty abatement for my late-filed 2011 Schedule F?

Possibly. The IRS may grant abatement for reasonable cause or first-time abatement if you meet eligibility and documentation requirements.