Recently, the question was asked, “what are the consequences of incorporating or forming an LLC after electing to defer crop insurance and disaster payments?”1 It is tempting to change entities (for the business entity involved), particularly if income shifting to a lower tax bracket taxpayer is possible. However, that outcome seems to be blocked by assignment-of-income rules of long standing.
Harl, Neil E.
"Change of "Taxpayer" After Crop Insurance (and Disaster Payment) Deferral,"
Agricultural Law Digest: Vol. 21
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol21/iss1/1