irs audit

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L1: irs audit
hello, I just recieved a IRS mail audit for a 72t I started back in 2007. The audit is just for the year 2009. They sent me a bill for the 10% penalty along with a negligence charge of 20%. I believe it is because my 1099 form with T-Rowe price lists it
as a premature distribution since I started this when I was only 52. My question is whatdocumentation should I send in to show the IRS that I have set up a 72t. I have the worksheet which was set up correctly. I sent in this form along with my tax return
back in 2009. thanks

2011-10-27 20:29, By: ollie, IP: []

L2: irs audit
Did you file IRS Form 5329 with your tax returns to claim the exemption?
You can find the instructions for form 5329 here… the form for 2010 here…
2011-10-27 20:59, By: Gfw, IP: []

L3: irs audit
No, I sent in the letter I submitted to T-Rowe to start the 72t and my worksheet to calculate my distribution. Iam going to send the IRS a 5329 and hope they accept it and not charge me the 10% penalty, late fees and accuracy fee, thanks
2011-10-28 23:06, By: ollie, IP: []

L4: irs audit
Go back and look at your 1099s for all past years and see if they were coded with a ‘2’ – if not, you should have filed a 5329 to claim the exemption where not coded with a ‘2’.
Make sure that you read the instructions or get professional help – for 2009, you need the 2009 5329 form.
2011-10-28 23:48, By: Gfw, IP: []