Recharacterization time limit
Client has filed tax return on normal filing date (no extension). Client did a Roth conversion in 2011. Does client still have until October 15, 2012 to recharacterize and file an amended return?
Client has filed tax return on normal filing date (no extension). Client did a Roth conversion in 2011. Does client still have until October 15, 2012 to recharacterize and file an amended return?
Permalink Submitted by Alan Spross on Mon, 2012-05-07 16:55
Yes. The October extended due date applies if the return is filed by the due date OR an extension is filed.
But the return will need to be amended, unless the return included an explanatory statement anticipating the recharacterization and included the correct taxable income. The IRS and client will not get the 1099R for the recharacterization until next January.
Permalink Submitted by Donald L Born on Mon, 2012-05-07 19:25
Thanks, Alan
It seems that many accountants are not up on this which I find a little unsettleing.