03/15/22
Hi friends
Is the Form 8915-E election in Part III line 17 NOT to spread taxable amount over 3 years irrevocable?
Friends in NC received a CP2501 Notice for tax year 2020.
It appears that they took a $ 100,000 (IRA) Qualified 2020 disaster distribution on 12/31/20.
The preparer reflected the $ 100,000 on Line 4a and reported $ 0 on Line 4b.
Form 8915-E Part I line 2 reported $ 100,00 in 2 a & 2b and $ 100,000 at 4a, 4b, & 4c
Form 8915-E Part III line 15, 16 reported $ 100,000.
Line 17 elected to NOT spread the taxable amount over three years by placing an "X" in the box resulting in $ 100,000. Line 9 "check the box" was not checked.
Line 18 reflects the full $ 100,000 as repaid before the filing of the return.
Line 19 reflects $ 0 subject to tax. None was repaired prior to filing the return and none has been paid in 2021 nor 2022.
My question is:
Can they file an amended 2020 return, amend Form 8915-E "uncheck the box" and report $ 33,333 as taxable in 2020 and pay it now and report $ 33,333 as taxable in 2021 and pay that with the filing of the 2021 return no later than October 15, 2022 if on extension and report $ 33,334 as taxable in 2022 and pay no later than October 15, 2023.
I hope they can.
All comments and citations are appreciated and welcome.
Thank you, Tony
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Tony Attina
ANTHONY ATTINA CPA
Youngsville NC
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