My client inherited her 76 year old father’s IRA in 2005. She withdrew her first draw in 2005. She then missed 2006 – 2014. How to correct this error? Should we file form 5329, pay the tax, and attempt to explain away the penalty, or simply pay the penalty. In this case I would assume you take the 12/31 balance for each year, then the distribution that should have taken place and the penalty would be 1/2 of that amount? Further, as an advisor, would it be reasonable to subtract the tax she would have, and now has, paid from the penalty and thus reimburse the client? Leonard Abrams