Filing Foirn 5329- for ten years
Taxpayer wishes to make a request for abatement for 50% penalty for failure to withdraw required distributions.
Consensus seems to be that a separate Form 5329 should be filed for each year that an RMD was missed. IRS instructions require using the version of Form 5329 that applies to each year!
In most cases, my advice would be to mail ten envelopes, ie one 5329 per envelope. Does anyone have any feedback? My concern is that ten separate filings while perhaps creating lower profile, would be more likely to trigger a problem; One or two years could be potentially mishandled given that there are potentially ten different employees processing????
Thanks
JIm
Permalink Submitted by Alan - IRA critic on Wed, 2021-10-27 16:19
It’s probably a toss up regarding the number of envelopes. Given the condition the IRS is in right now, I don’t know that either way would be foolproof. Also, not sure that taxpayer will get any acknowledgement of the forms or waiver approval any time soon or perhaps not at all. If separate envelopes are chosen, then a statement of explanation with each one is also needed. If sent in a single envelop the statement could cover them all, showing the missed RMD amount for each year, and perhaps a copy of the IRA distribution statement totalling to the combined missed RMDs. Remember, there were no RMDs for 2009 or 2020.