CP 2000 notice
L1: CP 2000 noticeHello. I received a bill today from the IRS for my existing SEPP plan which I began back in May 2011. It’s for the 2014 tax year and I haven’t received notice for any of the other years (yet!). My date of birth is 02/12/1955.
My plan is to send them another 5329 and a copy of the 1099R which has distribution code 2 in box 7 checked. Also a letter explaining this is part of a SEPP plan. Is this enough, or should I send all the paperwork associated with the SEPP? Thanks!2016-08-11 23:50, By: Bruce, IP: [220.127.116.11]
L2: CP 2000 noticeThis does not make sense. The IRS is billing you for 10% of your 2014 IRA distribution when the 1099R was coded 2? If so, I would just send them a copy of the 1099R and circle the 2 code. Don’t send any more than is necessary unless the IRS asks for it. Not sure why you filed a 5329 either if the 1099R was already coded 2…..maybe that was what triggered the Notice.
It appears you reached 59.5 in August, 2014. Did you take any distributions in 2014 after that date? If so, you should have a received another 1099R for those distributions coded 7. But the IRS does not know the date of your distributions, so if the only 1099R for 2014 was code 2, the IRS would probably assume that you had a SEPP plan and the custodian felt you complied.
2016-08-12 01:33, By: Alan S, IP: [18.104.22.168]
L3: CP 2000 noticeHi Alan,
Thanks, I’m going to do just what you said. I didn’t send another 5329 btw, don’t know what triggered the penalty. I’m now thinking that the code 7 is what did it because I didn’t receive a 1099R coded that way? Just the code 2 for the full amount was sent.
Bruce2016-08-14 23:06, By: Bruce, IP: [22.214.171.124]
L4: CP 2000 noticeAs long as the 2 coded 1099R shows the entire amount of your IRA distributions for the year, the IRS would not be looking for a 1099R coded 7. It appears that the IRS just missed the 2 coding, so I would start by sending then a copy of that 1099R and telling the IRS that the custodian coded it 2 because you have an active 72t plan.2016-08-15 04:29, By: Alan S, IP: [126.96.36.199]