Missed RMD
Can form 5329 be filed as a stand-alone? My understanding is that it doesn’t have to be filed when one files the 1040 and that it’s best to correct the mistake and notify the IRS ASAP along with a letter explaining how/why it happened. Is that correct?
Permalink Submitted by Alan - IRA critic on Thu, 2017-01-12 22:30
The IRS instructions for Form 5329 are poorly written, but they imply that that a 1040 or 1040X is desired. However, for late RMD penalty waivers the IRS WILL accept a stand alone 5329 as it does not affect the basis tax return. Technically, the 5329 is it’s own independent return. Therefore, if you file it stand alone the IRS will probably accept it, but some examiners might kick it back and ask for a 1040X. My guess is that 80% of the time the IRS will accept it stand alone.