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The stated legislative purpose for the deferral of crop
insurance proceeds under section 451(d) was to allow farmers, in
and for the year they incur crop damage and receive insurance
proceeds, to avoid having to pay Federal income tax on 2 years’
worth of income relating to their crops (namely, income deferred
under their normal practice from the prior year into the current
year and also crop insurance proceeds received in the current
2(...continued)
made by means of a statement attached to the taxpayer’s
return (or an amended return) for the taxable year of
destruction or damage. The statement shall include the
name and address of the taxpayer (or his duly
authorized representative), and shall set forth the
following information:
(i) A declaration that the taxpayer is making an
election under section 451(d) and this section;
(ii) Identification of the specific crop or crops
destroyed or damaged;
(iii) A declaration that under the taxpayer’s
normal business practice the income derived from the
crops which were destroyed or damaged would have been
included in his gross income for a taxable year
following the taxable year of such destruction or
damage;
(iv) The cause of destruction or damage of crops
and the date or dates on which such destruction or
damage occurred;
(v) The total amount of payments received from
insurance carriers, itemized with respect to each
specific crop and with respect to the date each payment
was received;
(vi) The name(s) of the insurance carrier or
carriers from whom payments were received. [Emphasis
added.]
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Last modified: March 27, 2008