winger
Recycles dryer sheets
- Joined
- Jan 9, 2007
- Messages
- 280
We have two 72T withdrawals from separate IRAs. Both were set-up according to IRS regulations, and the withdrawal is a little to the conservative side.
We received a letter from the IRS in November 09 that we owed the 10% penalty for early withdrawal from an IRA. This is the second time that our withdrawals have been questioned, the other time was our 2006 return. It took nearly a year to reach resolution for that- no additional tax due. They don't ever send a letter- they just stop sending collection notices. It was handled by the Austin, Texas office. People I talked to were nice enough, bit none had a clue about IRA early withdrawals. Finally worked it through the taxpayer Advocate.
This time, the notice we received was for tax year 2008, but the amount in question was exactly the same. This was from the Philadelphia office. What is near Philly? Valley Forge, PA?
Anyway, I immediately called the contact number. Again, they were nice enough, except they had no info from the previous dispute, except they could see that "something" happened with the 2006 return, Sorry, but I would need to start all over. My next call was to the Taxpayer Advocate on the notice- This time in Philly. Long story short, she had it straightened out in about 3 weeks. And called to let me know.
Here is the surprising part. Our return is very simple, standard deductions and form 5329, Early Withdrawal from an IRA. They did not have the 5329 form. Only two 1099s from Vanguard, showing the withdrawals as "1". Form 5329 is what you file to say that Vanguard is wrong again this year, the code should be "2".
I asked her to look at 2006. No 5329 there, either.
I file electronically, and have both returns as PDF files. Both PDF have form 5329.
Her suggestion? File paper forms.
We received a letter from the IRS in November 09 that we owed the 10% penalty for early withdrawal from an IRA. This is the second time that our withdrawals have been questioned, the other time was our 2006 return. It took nearly a year to reach resolution for that- no additional tax due. They don't ever send a letter- they just stop sending collection notices. It was handled by the Austin, Texas office. People I talked to were nice enough, bit none had a clue about IRA early withdrawals. Finally worked it through the taxpayer Advocate.
This time, the notice we received was for tax year 2008, but the amount in question was exactly the same. This was from the Philadelphia office. What is near Philly? Valley Forge, PA?
Anyway, I immediately called the contact number. Again, they were nice enough, except they had no info from the previous dispute, except they could see that "something" happened with the 2006 return, Sorry, but I would need to start all over. My next call was to the Taxpayer Advocate on the notice- This time in Philly. Long story short, she had it straightened out in about 3 weeks. And called to let me know.
Here is the surprising part. Our return is very simple, standard deductions and form 5329, Early Withdrawal from an IRA. They did not have the 5329 form. Only two 1099s from Vanguard, showing the withdrawals as "1". Form 5329 is what you file to say that Vanguard is wrong again this year, the code should be "2".
I asked her to look at 2006. No 5329 there, either.
I file electronically, and have both returns as PDF files. Both PDF have form 5329.
Her suggestion? File paper forms.
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