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Subject Author Date
Will I get a notice from the IRS? gindie 05-24-2007
Posted by gindie on May 24, 2007, 11:30 pm
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 During 2006, wife withdrew a small amount of excess same-year
contributions from her SIMPLE IRA.

Fidelity performed the transaction and sent a letter at the time
indicating the taxable amount (the earnings) of $13. However, when
the 1099-R came Fidelity left the "Taxable Amount" box 2a blank.

Using TaxAct (and also TaxCut), I couldn't find a way to get the
taxable amount ($13) onto the correct line of Form 5329 (line 1 and
then 3) UNLESS I put the $13 into Box 2a of the 1099-R worksheet
provided by the software.

So, when I e-filed, the 1099-R that I completed in the software
didn't exactly match the 1099-R that Fidelity filed. But, the
penalty of $1 did correctly appear on 1040 line 60.

Do I have anything to worry about. And, if so, how long do they
normally take to discover such things?

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<< that may be imposed upon the taxpayer. >>
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Posted by Mike Wellman on May 25, 2007, 10:51 pm
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> During 2006, wife withdrew a small amount of excess same-year
> contributions from her SIMPLE IRA.
>
> Fidelity performed the transaction and sent a letter at the time
> indicating the taxable amount (the earnings) of $13. However, when
> the 1099-R came Fidelity left the "Taxable Amount" box 2a blank.
>
> Using TaxAct (and also TaxCut), I couldn't find a way to get the
> taxable amount ($13) onto the correct line of Form 5329 (line 1 and
> then 3) UNLESS I put the $13 into Box 2a of the 1099-R worksheet
> provided by the software.
>
> So, when I e-filed, the 1099-R that I completed in the software
> didn't exactly match the 1099-R that Fidelity filed. But, the
> penalty of $1 did correctly appear on 1040 line 60.
>
> Do I have anything to worry about. And, if so, how long do they
> normally take to discover such things?


You have nothing to worry about.

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by James Lewis on May 25, 2007, 10:51 pm
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> During 2006, wife withdrew a small amount of excess same-year
> contributions from her SIMPLE IRA.
>
> Fidelity performed the transaction and sent a letter at the time
> indicating the taxable amount (the earnings) of $13. However, when
> the 1099-R came Fidelity left the "Taxable Amount" box 2a blank.
>
> Using TaxAct (and also TaxCut), I couldn't find a way to get the
> taxable amount ($13) onto the correct line of Form 5329 (line 1 and
> then 3) UNLESS I put the $13 into Box 2a of the 1099-R worksheet
> provided by the software.
>
> So, when I e-filed, the 1099-R that I completed in the software
> didn't exactly match the 1099-R that Fidelity filed. But, the
> penalty of $1 did correctly appear on 1040 line 60.
>
> Do I have anything to worry about. And, if so, how long do they
> normally take to discover such things?

You may get an IRS letter. If so, either respond with the
payment they compute in a timely manner or give them the
explanation you gave above. On such a small amount I would
expect a very tiny amount if a letter is sent at all and its
usually easier just to pay it and get it behind you than
playing letter tag with them on such a small matter.

Mike

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on June 3, 2007, 10:30 pm
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gindie wrote:

> During 2006, wife withdrew a small amount of excess same-year
> contributions from her SIMPLE IRA.
>
> Fidelity performed the transaction and sent a letter at the time
> indicating the taxable amount (the earnings) of $13. However, when
> the 1099-R came Fidelity left the "Taxable Amount" box 2a blank.
>
> Using TaxAct (and also TaxCut), I couldn't find a way to get the
> taxable amount ($13) onto the correct line of Form 5329 (line 1 and
> then 3) UNLESS I put the $13 into Box 2a of the 1099-R worksheet
> provided by the software.
>
> So, when I e-filed, the 1099-R that I completed in the software
> didn't exactly match the 1099-R that Fidelity filed. But, the
> penalty of $1 did correctly appear on 1040 line 60.
>
> Do I have anything to worry about. And, if so, how long do they
> normally take to discover such things?

Never fear; the end is not near.

You handled it correctly and IRS cares little about such
incongruity.

ChEAr$,
Halan Lunsford, EA n LA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

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