IRA BAP letter_Guaranteed Final - Inflation Reduction Ac

Farm

Production and Conservation

Farm

Service

Agency

Farm Loan Programs

Stop 0520

1400

Independence

Avenue, SW

Washington, DC

20250-0520

Voice: 202-720-4671

Fax: 202-692-4106

(Borrower Name and Address)

Dear Borrower,

On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law by President Joseph Biden. Section 22006 of the IRA includes provisions for the Farm Service Agency (FSA) Farm Loan Programs (FLP) to provide relief in the form of payments and/or loan modifications to distressed Farm Loan Programs (FLP) borrowers.

FSA borrowers qualifying for IRA assistance include those with at least one FLP loan that was 60 or more days delinquent as of September 30, 2022 or those that meet the automatic. Guarantee loans qualifying for this assistance under Section 22006, which will reduce the indebtedness on FLP loan accounts must be FLP loans guaranteed under the authority of the Consolidated Farm and Rural Development (CONACT).

Your account was identified as having one or more guaranteed FLP loans that meet the qualifying criteria above. However, our records show that you are currently under the jurisdiction of a bankruptcy court. Because you are under the jurisdiction of a bankruptcy court, before FSA provides the following IRA payment, FSA requires your written agreement:

Loan No.	Principal Payment	Interest Payment	Total Payment
XX-XX	$	$	$

(FSA Office to insert amount to bring the customer current on all eligible loans per loan default status report for September 30, 2022)

If you are operating without a confirmed plan, this payment will cure the delinquency identified in the loan default status report provided by your lender to FSA on delinquent guaranteed loans as of September 30, 2022. If you are operating under a confirmed plan, the payment will cure any plan delinquency occurring on secured debt owed per the loan default status report provided by your lender as of September 30, 2022. This IRA assistance to guaranteed loan borrowers under Section 22006 can only be provided in this manner. If you also have direct FLP loans, you will be notified separately if you qualify for payment on those loans.

If you agree to accept the above payment, please return your written agreement to this FSA service center within 60 days of the date of this letter. You may be responsible for notifying the bankruptcy court of the IRA payment and you should consult with your attorney to determine what responsibilities you may have before agreeing to accept this IRA payment.

IRA assistance recipients will receive an Internal Revenue Service Tax Form 1099-G from FSA. Please note that payments are subject to Federal and State Income Taxes and will be reflected on your annual 1099-G. To learn more about potential tax implications of USDA program payments please visit www.farmers.gov/taxes. This webpage will continue to be updated with resources on potential tax consequences of Section 22006 assistance.

If you have questions, please contact this office at ___________.

Sincerely,

Farm Loan Manager

Farm Service Agency

Exhibit 1	U.S. DEPARTMENT OF AGRICULTURE
(05-01-23)	Farm Service Agency
Inflation Reduction Act of 2022 Section 22006 (IRA) Payment Notification Response Form

Please select one of the following three options and return this response to your local FSA Service Center:

[ ] 1. I agree to receive the IRA payments in the amounts provided on the attached letter.

I understand and acknowledge:

• IRA payments will be made jointly payable to my lender and me and is to be used only for repayment of my farm loan debt with the subject lender.

• If the calculation used to establish my payment is determined to be incorrect or the information on which I was determined to qualify for a payment is determined to be incorrect, FSA may recalculate or reverse the payment.

• I am currently subject to a bankruptcy court’s jurisdiction. By accepting this payment, I acknowledge it is my responsibility to consult with my attorney who may notify the bankruptcy trustee and/or the bankruptcy court that I am accepting this payment. If I receive any refunds of payments as identified above, it is also my responsibility to consult with my attorney who may notify the bankruptcy trustee and/or the bankruptcy court.

• Receiving an IRA payment may have income tax consequences for me or my farm operation and it is my responsibility to consult with an accountant or tax attorney concerning any potential tax consequences. It is my responsibility to pay any and all taxes that may be owed as a result of receiving an IRA payment.

• Due to the number of IRA payments to be processed, it may take several weeks for FSA to process the payment to my account.

[ ] 2. I do not want to receive the IRA payment.

I understand and acknowledge that:

• My decision to not accept the IRA payment is final and irrevocable.

• FSA will continue servicing my debt in accordance with FSA regulations and subject to the bankruptcy court’s jurisdiction.

[ ] 3. I want to schedule a meeting with the local FSA office and/or my guaranteed loan lender to discuss this notice before I make a decision.

I understand and acknowledge that:

After the meeting with FSA, I will have an additional 30 calendar days to accept or decline the IRA payment that was listed on this notification.

My meeting preference is:

[ ] telephone meeting on my phone number ______________________________.

[ ] in person at the FSA office. However, I understand and acknowledge that scheduling an in person meeting may not be possible due to local, State or Federal restrictions due to COVID-19.

FSA will contact me within seven (7) days of receiving my request for a meeting.

Please select one option and sign and return this document to this office within 60 days of the date of the attached IRA Payment Notification Letter. .

Name	Date	Signature
The following statement is made in accordance with the Privacy Act of 1974 (5 USC 552a - as amended). The authority for requesting the information identified on this form is the Inflation Reduction Act of 2022, the Computer Security Act of 1987 (Pub. L. 100-235), OMB Circular A-123, Federal Managers’ Financial Integrity Act of 1982, and Privacy Act of 1974 (5 USC 552a - as amended). The information will be used to process the customer’s request for payment according to IRA and applicable regulations. The information collected on this form may be disclosed to other Federal, State, Local government agencies, Tribal agencies, and nongovernmental entities that have been authorized access to the information by statute or regulation and/or as described in applicable Routine Uses identified in the System of Records Notices for AMS-3, Perishable Agricultural Commodities Act (PACA), USDA/FSA-2, Farm Records File (Automated), USDA/NRCS-1, Landowner, Operator, Producer, Cooperator, or Participant Files, and USDA/RD-1, Applicant, Borrower, Grantee, or Tenant File. Providing the requested information is voluntary. However, failure to furnish the requested information may result in a determination that FSA cannot process the customer’s request for payment. The provisions of criminal and civil fraud, privacy and other statutes may be applicable to the information provided. RETURN THIS COMPLETED FORM TO YOUR LOCAL FSA OFFICE.
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: [email protected]. USDA is an equal opportunity provider, employer, and lender.

USDA is an equal opportunity provider, employer, and lender.