RMD

L1: RMDI have a 74 age client. She missed RMD withdrawal in Dec 2003 for $800. We noticed and took withdrawal in Feb 2004 and we will take another in Dec 2004. She already filed tax return for 2003. Should she amend 2003 taxes? Or let it go and hope IRS does not catch it.2004-04-01 15:05, By: Bill, IP: [63.224.195.161]
L2: RMDClearly, the right answer is to pay the penalty and file what ever amended returns are required. I would then ask the IRS for mercy outlining the fact that the miss was accidental (or whatever was the real reason) and that the correction was made as soon as the error was discovered.
Also remember that 2003 was the first year that IRA Trustee/Custodians starting telling the IRS that a distribution was due. My guess is that their computer systems are looking for tests!
2004-04-01 18:03, By: Gfw, IP: [12.221.34.192]