You can request a waiver with a reasonable cause Here are the instructions:
Waiver of tax. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows. 1. Complete lines 52 and 53 as instructed. 2. Enter "RC" and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54. 3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55. The IRS will review the information you provide and decide whether to grant your request for a waiver.
Very truly yours,
ROBERT S. BARNETT
Long Island Office:
100 Jericho Quadrangle, Suite 233
Jericho, New York 11753
New York City Office:
1385 Broadway, 12th Floor
New York, New York 10018
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