Payment-in-Kind Tax Treatment Act of 1983

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 98-14) Payment-in-Kind Tax Treatment Act of 1983 - Amends the Internal Revenue Code to permit farmers who participate in a 1983 payment-in-kind program to treat commodities received under such program as income in the year of sale rather than in the year of receipt. Provides that farm land diverted under a 1983 payment-in-kind program shall be treated as used in a farming business for purposes of the estate tax special use valuation. Treats such income as farm income for all tax purposes, including the social security tax. Limits such tax treatment to only those crops which would normally be harvested or planted on or before December 31, 1983. Restricts eligibility for such tax treatment to those who own farm lands as of February 23, 1983, or those who received such land through: (1) inheritance; (2) gift from a person who held suchland as of such date; or (3) gift or purchase from a family member who held such land as of such date. Specifies that an organization which was organized as an agricultural organization in 1955 and has been granted tax-exempt status shall continue to qualify for such status if it meets certain requirements. Requires the Secretary of the Treasury to submit to the Congress by September 1, 1983, a study of the effects of the payment-in-kind program and its tax treatment.

Congressional Research Service · 1983-03-02