When you prepare to file your 2011 farm income tax return, you will find the Internal Revenue Service has made some major changes in the 2011 Form 1040 Schedule F. It is important to understand these changes.

The 2011 Schedule F has new sub-lines, all of which begin with the word “specified.” Lines 1a, 2a, 7a, 8a, 37a, 42a, and 43a were added to implement reporting of farm income received via merchant card and third-party network payments.