Farm taxation rules are detailed and complex.  The following generalized information should not be considered a substitute for consulting with a qualified attorney and/or accountant.  The information provided herein is for general information purposes only.

The direct farm business' federal, state and local tax liability depends on the chosen business form.  The federal Internal Revenue Service (IRS) and the Illinois Department of Revenue (IDOR) maintain websites that contain detailed information on tax requirements, including statutes, regulations, informational publications and forms.  Individual web pages from IRS and IDOR sites will be linked throughout this section, where relevant.

These pages are organized by the type of tax the direct farm business may be liable for, such as income taxes, self-employment and employment taxes, sales taxes and excise taxes, and property taxes.  A thorough discussion of tax liabilities is beyond the scope of this project both because of space limitations, and because the uniqueness of each direct farm business makes tax analysis complicated.  The pages, therefore, provide an outline of what tax issues a direct farm business might confront, and links to web sites that provide more detailed information on each issue.

Continue to Tax Requirements at Initial Set-Up