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Late 1st required minimum distribution (RMD)

October 06, 2016 • Michael Pattison • Log In to Post Comments

I have a client that missed the deadline for their first Required Minimum Distribution (RMD) on April 1, 2016.  They took the distribution within the month of April.

I have been told that it is important to notify the IRS as soon as possible of the error in order to get the penalties abated/waived.  I have reviewed the Form 5329 instructions, but it does not appear that is a form that you file separately from a tax retrun (at least in this case) and it would require paying the penalty with the form.

Does anyone know how to notifiy the IRS of the error "as soon as possible" to request abatement of the penalties  - in other words prior to the filing of the 2016 tax return?

Thank you,

Michael


Comments

See instructions for 5329. You include the penalty on the return and request abatement. Attach an explanation

Hello thank you.  So, importantly, there is really no process to do it before you actually file the tax return for the year that the distribution was made?  So, in this case, I would not try to preempt the situation by writing to the IRS (now), I would simply wait and file the 2016 tax return and request abatement at that time?  Also, I realize this is a tough question, but in your experience, are people generally succesful with waiting until the return is filed? Thanks
Michael

That's correct.

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