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  • 1.  Client did not receive RMD for 2023 what are the chances of getting a waiver with form 5329?

    Posted 03-28-2024 12:45 PM

    Client works with a broker who arranged for RMD in 2022. However, he didn't do it in 2023, meanwhile the client thought that it was set up to be an automatic distribution. She had many conversations with the broker during the year and not once did he mention the 2023 RMD. I'm wondering if that explanation might suffice to wave the 25% penalty? 



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    Yves Richards
    CPA
    Yves Richards, CPA
    Baldwin NY
    516-316-3363
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  • 2.  RE: Client did not receive RMD for 2023 what are the chances of getting a waiver with form 5329?

    Posted 03-29-2024 06:50 AM
    On many penalties, the IRS has a posted list of acceptable reasons for penalty waiver. The first step is to determine if that penalty is one that qualifies  for waiver consideration,, the second would be to determine if you have adequate verification to establish that the professional reliance criteria is appropriate. and adequate  Hopefully the broker will provide a written sttement as well, to assist in verifying what transpired.
    Should you need additional assistance with this, feel free to contact me directly. 
    I was an IRS revenue Agent, retiring in the last few  years after 44 years, as a IRS Senior Renue Agent Team Coordinator in large Business / International, now acting as consultant on IRS tax matters

    Howard M. Silverman, Enrolled Agent  



    Original Message


  • 3.  RE: Client did not receive RMD for 2023 what are the chances of getting a waiver with form 5329?

    Bronze Most Valuable Member
    Posted 03-29-2024 07:09 AM

    I am eager to hear responses. I have 2 clients - 1 primarily with Vanguard, which had a software reorganization and didn't issue RMD in the process.



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    Martha A Berghahn
    CPA
    BERGHAHN TAX AND ACCOUNTING SOLUTIONS, LLC
    Sparta NJ
    914-260-1587
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    Original Message


  • 4.  RE: Client did not receive RMD for 2023 what are the chances of getting a waiver with form 5329?

    Bronze Most Valuable Member
    Posted 30 days ago
    Yves:
    We have had three of these so far this year. Completing part IX of form 5329 to request a penalty waiver requires an explanation. Be sure to include the remedial actions taken to correct the oversite an ensure it will not happen again. 
    The taxpayer should take an immediate distribution for the missed RMD. This should not be combined with the 2024 RMD which will have to be taken by year end. 

    Frank Sands, CPA
    Managing Partner

    Sands, Gililland & Co., P.C.
    Certified Public Accountants
    400 Chisholm Place, Suite 213
    Plano, TX  75075
    972.516.4868  Office
    972.516.4881  Fax
    http://www.sgcompanycpas.com/. Click or tap to follow the link." rel="noopener noreferrer" target="_blank" href="http://www.sgcompanycpas.com/">www.sgcompanycpas.com




    Original Message


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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.