Recently you received a letter from Baird & Brunson Land Management Group, LLC requesting that you sign an FSA form CCC-927 and/or CCC-928 form, which is then forwarded by you to the IRS. Here are some answers to FAQs we found to be pertinent to our clientele. These FAQs were provided by the Arkansas State FSA office:

Q: "H(usband) & W(ife) file a joint tax return. How will the calculation for validation process work for each person's AGI, whether the H & W both receive benefits or if only one spouse receives benefits?"

A: "If both spouses are receiving 2009 and/or 2010 program payments subject to average AGI, each must complete a CCC-927 and timely submit it to the IRS. Even though a joint return was filed, the process will use the husband's tax identification number nad the total amounts on the joint returns filed for the applicable yearsyears in the calculation of teh average AGI values.If the data returned from the IRS indicates compliance with the average AGI limitations, both spouses will be considered as AGI compliant. If the data returned indicates failure to pass the AGI tests, then further review will be necessary by the FSA. The process does not 'split' incomes between the spouses that file a joint return. The only manner available is for the husband and wife on refiew to provide a statement from a CPA or an attorney of what the AGI would have been had separate returns been filed for teh applicable years."

Q: "If a joint return is filed by H & W and only one spouse requests benefits thus only having one CCC-927 filed, do both spouses need to sign CCC-927?"

A: "Only the spouse that is requesting the 2009 and/or 2010 program benefits must sign and submit a CCC-927."

Q: "The notice mentions that the form must be submitted by June 15 to avoid any delays in issuance of 2010 payments. Will final payments in October, such as DCP, new annual CRP/SAFE payments, be witheld for those who did not send the form to the IRS? If so, will such witholding be accomplished by setting the flags as not AGI compliant?"

A: "The date of June 15 was initially established in order to provide sufficient time to reconcile the AGI compliance records withthe information returned from teh IRS and to resolve the majority of the differenes prior to the issuance of of final payments under programs subject to AGI compliance. However, this date all depends on how this process progresses and the timeliness of any data returned from teh IRS. Additional instructions will be issued in teh coming months of 2010."

Q: "If a program participant certified as being AGI-non-compliant, is there any need for them to submit a CCC-927 or CCC-928?"

A: "If the participant certified as non-compliant with all three AGI limitations, then there would be no need to submit either of the forms."

Q: "If one member of a legal entitiy does not complete a CCC-927, but the legal entitiy completes a CCC-928, what happens to the AGI compliance for the legal entity?"

A: "As long as the legal entity files the CCC-928 and is in compliance, the legal entity's AGI flag will remain eligible. Additional instructions will be forthcoming for follow-up compliance activities; when to set the AGI flag to non-compliant; and, the requestthat a share of the payments be refunded."