<< I owe 9K to Uncle Sam for 1999. Out of this 9K, 3K is tax due on Roth IRA conversion (spread over four years). I also owe $300 tax penalty. Is it possible to claim a waiver on the tax penalty? I was goin to request that Roth IRA conversion as the main reason for underpayment of taxes. What are the possible reasons for which IRA would waive the penalty? >>There's no special waiver on the Roth income. It would be hard to say that it popped up unexpectedly <g>.With the numbers you posted, it doesn't look to me like the conversion is the main reason for your balance due. Your total tax is at least $10,001 since you don't meet the 90% safe harbor, so your conversion tax is less than a third of your total tax.If your income was not uniform throughout the year, you may benefit from the annualized income method of calculating the penalty. See Form 2210.Phil MartiTax Preparer
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