Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: brucedoe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: Re: Mistakenly late RMD Date: 1/19/2013 2:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
Poz

I actually had this happen to me and your client is in for a ride and should be made aware of the Taxpayer Advocate Office in the IRS. but first, II paid the 50% penalty but then applied to reclaim it because I had no intent to defraud the government. As I recall you can do this on the form. I quickly got the refund from one IRS office (maybe Memphis) after going through a resolution office I think in Washington, D.C., when I supplied them with all the paperwork, but then received threatening letters from the Philadelphia office wanting the 50% with interest and penalties and claiming I had never paid the penalty. When I sent them the package of all the increasing paperwork (added letters etc.) They replied I was too late and they had turned the matter over to a collection agency. Someone on this board told me about the Taxpayer Advocacy Office and I went 70 miles to one with a yet larger package of paperwork. They accepted the case and was told they would handle it from there. First I got a notice after several months that I was relieved of the interest and penalty charges. Then a few months later I was forgiven the whole matter. I think the whole process took 7 mo.!

My own suggestion is that the person shouldn't screw around with this and should pay the penalty with their tax form and claim a refund in a place on the form and be ready to go to the Taxpayer Advocacy Office with all the paperwork. Don't throw ANYTHING away and prepare to do a lot of duplicating. It is important that the client be able to show she has paid the penalty.

I don't know how typical my case was, but my guess is that she will get her money back if she sticks to it and doesn't give up. Once the IRS goes off the track, it is a mess.

brucedoe
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement