Form 943 (Agricultural Employer) COVID Penalty Refund

Agricultural employers filing Form 943 for farm payroll, hit with penalties during Jan 20, 2020 – July 10, 2023, may be eligible for refunds under Kwong. The 2020 through 2022 annual filings (each due Jan 31 of the following year) all fall within the window. File Form 843 by July 10, 2026. Refund eligibility is not guaranteed; Kwong is being appealed.

Who qualifies

Agricultural employers using Form 943 for farm payroll were subject to the same §6651 late-filing and late-payment penalty rules as other employers. Penalties assessed on Form 943 during the disaster window may be eligible under the Kwong reasoning. This page applies to operations that hire farm workers and report payroll on Form 943 instead of Form 941.

  • Employer account transcript shows a Form 943 penalty assessment dated between Jan 20, 2020 and July 10, 2023.
  • Your operation files Form 943 (not 941) for farm payroll reporting.
  • Penalties may include §6651(a)(1) failure-to-file, §6651(a)(2) failure-to-pay, or §6656 failure-to-deposit.

How much could I get back?

Form 943 penalty refunds typically track the size of the agricultural payroll. Small farms may see modest refunds; larger agricultural operations with substantial farm payroll may see materially more. Refund eligibility and amounts cannot be guaranteed.

Why this specifically

Agricultural employers are an under-served segment for tax-controversy services. Many farm operations rely on bookkeepers rather than tax professionals and may not have heard of Kwong. The deadline reasoning applies identically to Form 943.

FAQ

Does this apply to seasonal farm operations?

Yes. Whether you file Form 943 every year or only in years you have farm payroll, the same penalty rules and the same Kwong reasoning apply.

What if we use a payroll service — do we still file Form 843 ourselves?

Form 843 is filed by the employer of record (the farm operation itself), not by the payroll service. Your payroll service can provide records, but the claim is the farm's.

Does this overlap with H-2A worker issues?

H-2A guest worker tax rules are a separate area of complexity. The Kwong reasoning here applies to standard penalty assessments under §6651 — not to substantive H-2A withholding or classification questions.