bank ira cd’s
I have posted several items the last one being 9-23. This involves the bank showing the accrued interest incorrectly resulting in my paying taxes twice on that amount through my FMV and RMD. I keep hoping that someone out there is really an expert or has come across this when checking out the year end bank statement.
Working with the OCC and FDIC has left me wondering how this can be possible. The intelligence level of these regulators is unbelievable. It is no wonder that the banks are in deep trouble.
Permalink Submitted by Jose Morales on Mon, 2008-09-29 21:15
It is perfectly acceptable to include the accrued interest up to December 31st in your FMV and for them to use that figure to calculate your RMD. You feel that if they do this then they must subtract the accrued interest from the next year’s FMV and believe that if they don’t then you are being “taxed twice” on the accrued interest. This is not correct. Your accrued interest is not reported to the IRS separately from your IRA balance and you are not paying taxes on the accrued interest. The FMV is a record of your balance on December 31st and as long as they are consistent in the method that they use to report this figure (inclusive of accrued interest or not) for your account and everyone else’s then everything is on the up and up.
Permalink Submitted by Alan Spross on Tue, 2008-09-30 00:25
We have provided this same answer to at least 3 other threads started by this poster. He rejects this response.
When asked to supply data on various specific info reports so that the exact numbers could be used to confirm our conclusions, there has been no response. Therefore, I don’t see how we can render any further assistance on the issue.