Missed RMD; Waiver Requested; Silence fm IRS; Refund Denied?
Hello – new here – very nice website – sorry if this question already answered – searched some but found nothing directly on point.
Boiled down as much as possible: If an RMD is missed (Dec ’05 – my elderly father’s), and its not our fault (usual paperwork was timely filed early Dec. but the mutual fund company just blew it), and a complete corrective distribution was made as soon as possible when the situation was discovered (month later in January but too late of course);
and we filed a Form 5329 with the next tax return with penalty payment and explanation and request for waiver of penalty, AND NOW WE HAVE NOT HEARD BACK FROM THE IRS ABOUT IT FOR A YEAR – DOES THAT MEAN IT WAS DENIED? (our taxes are filed in Oct) – would really like to affirmatively hear from them one way or the other – should I contact them? How? Who? What avenue of contact for this situation?
I have read in various places that the IRS often approves these waivers under these no-taxpayer-fault circumstances so I am still hoping for a favorable outcome for us, maybe in vain by now.
At any rate thanks in advance for any advice – would much rather just get it back from the IRS if possible than the hassle of trying to sue the investment company which financially might not be worth it anyway.
Permalink Submitted by Alan Spross on Wed, 2007-10-17 23:24
Send a follow up letter with a copy of the 5329 and your prior request to the IRS location where you filed the return. This is probably just inefficiency, and no reason to assume the request will not be accepted. The IRS had recommended that the request to excuse the penalty be filed without fronting the payment prior to your sending it, so they probably got tired of cutting checks, and this might be the source of the delay. If you did not attach a copy of the distribution statement containing the corrective distribution, include that with your request along with that of the 2006 and 2007 distributions as well, if 2007 has also been withdrawn.
Permalink Submitted by Lon Cooper on Thu, 2007-10-18 02:37
Thank you – will do.
Permalink Submitted by Tom Rogers on Thu, 2007-10-18 05:10
If I understand your post correctly the form 5329 was prepared in 2006 (you mention next year taax return ) . If so, that might be part of your problem and the paperwork snafu with IRS . If the missed distribution was for 2005 then the form 5329 should have been attached to the 2005 return.If this is the case you might want to include this information in your letter .
IRS is slow but not generally one year before you hear from them. Before sending letter I would suggest you contact IRS (be prepared to wait ) You might be able to get it resolved over the phone. I am confident you will get your moey back because of “reasonable cause ” but need to stay on top of this .
Permalink Submitted by Lon Cooper on Thu, 2007-10-18 05:33
Thanks cotopop – sorry for the confusion, yes the 5329 was attached to the 2005 return, not the 2006 (just filed the 2006 last Monday, Oct 15 – electronically) – so has been a year since the 5329 was sent in and nothing heard back.
If I try to call the IRS, is there a special department or number for this situation? – or just find a general IRS number? – maybe will just find a general number for the Austin office which is where I (paper) filed the 2005 return (I am in Houston). Thanks again.