Forgot to file form 5329

L1: Forgot to file form 5329DOB 11/11/57
I set up a 72T plan in 2010 and started receiving distributions in April of that year. I correctly filed a form 5329 with my tax return that year. I recently received a notice from the IRS assessing penalty on my 72T distribution for the 2011 tax year. It wasn’t until than that I realized I had not file the form 5329 for that year. I did not file it for the 2012 tax year either, but haven’t been notified for that year yet. My question is, what is the correct way to file the form 5329 for 2011. Can I just send the completed schedule to the IRS along with the notice I received or do I need to file a 1040X also?2013-09-27 14:05, By: DAVEK, IP: [216.221.109.210]

L2: Forgot to file form 5329There is usually no need for it, but the 5329 Inst. indicate in a confusing manner that a 1040X is required if you filed previously. The 1040X provides a place for you to make an explanatory statement for your filing, so you could use that space to explain your reason for adding the 5329 showing exception code 02. Do the same for each year. I assume you took out your exact annual SEPP distribution for these years.2013-09-28 01:00, By: Alan S, IP: [24.116.67.233]

L3: Forgot to file form 5329Thanks Alan for the reply. Even though there are no changes to be made to income or deductions, using the 1040X to explain that the 5329 was omitted when the return was originally filed makes sense. When I contacted the IRS about it, the representative said I would need to file a 1040X but she had no idea what a 72T was. Again, thank you.2013-09-28 04:33, By: DAVEK1, IP: [74.207.188.84]

L4: Forgot to file form 5329That’s becauhey probably know it as SEPP (SUBSTANTIALLY EQUAL PERIODIC PAYMENT PLANS), not to be confused with SEP ( SIMPLE EMPLOYEE PENSION PLANS).
The irony is that the IRS does not allow them to be “SUBSTANTIALLY EQUAL”, and requires them to be “EXACTLY EQUAL ANNUAL PAYMENTS”.
Of course, the IRS initially thought when they passsed the regualtion that everyone would be taking monthly or quarterly payments, and never realized that there would be options of varying frequencies.2013-09-28 15:29, By: dlzallestaxes, IP: [72.94.41.159]

L5: Forgot to file form 5329Actually, the regulations (both 89-25 and RR 2002-62) only deal with annual distributions.
There are 2 exceptions to the ‘exactly equal’ type payments: 1) Minium Distribution Method that automatically uses annual recalculation; and 2) either the annuity or amortization method using annual recalculation. 2013-09-28 15:58, By: Gfw, IP: [205.178.51.82]