lucky penny
Full time employment: Posting here.
- Joined
- Jan 23, 2010
- Messages
- 735
I'm expecting a large refund for my 2021 taxes. For the previous 2 yrs I had withheld too little since I wasn't sure how the taxes would play out in the first years of retirement & ended up owing a substantial amount, so this time I over-compensated. Instead of paying estimated taxes, I increased the withholding in my pension as well as my RMDs (for my IRA & deferred compensation accounts).
I just got a letter from the IRS asking me to submit the 1099-Rs showing the amounts withheld. I'm surprised -- doesn't the IRS automatically get 1099s? Isn't that how they know when to question the amounts reported as income?
I've always withheld a portion of my IRA RMD & deferred comp & never had an issue. Maybe the IRS is just looking more closely this time since the amounts last year were so much higher?
Is this something I should address in the future? I file electronically & don't think you can even send 1099s when you use Turbotax.
I just got a letter from the IRS asking me to submit the 1099-Rs showing the amounts withheld. I'm surprised -- doesn't the IRS automatically get 1099s? Isn't that how they know when to question the amounts reported as income?
I've always withheld a portion of my IRA RMD & deferred comp & never had an issue. Maybe the IRS is just looking more closely this time since the amounts last year were so much higher?
Is this something I should address in the future? I file electronically & don't think you can even send 1099s when you use Turbotax.