Number: RL34457
Title: Conservation Reserve Program Payments: Self-Employment Income, Rental Income, or Something Else?
Authors: Carol A. Pettit, American Law Division 
Abstract: The Heartland, Habitat, Harvest, and Horticulture Act of 2007 (S. 2242), introduced in the 110th Congress, contained provisions that would exclude CRP payments from self-employment income for some taxpayers and would allow all recipients to choose to receive a tax credit in lieu of the payments. These provisions were incorporated into the 2007 Farm Bill (H.R. 2419), which is in conference. This report outlines the history of the program, the changing positions of the IRS, pertinent case law, and other provisions of the Internal Revenue Code (IRC). Several possible approaches to the taxation of CRP payments are discussed.
Pages: 25
Date: April 14, 2008