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irs penalty

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Byted

L1: irs penaltyi am set up to take annual distributions with through my brokerage house. i received a distribution in 02 and 03, but my brokerage house forgot to issue my distribution in 04 and i did not catch it. how should i proceed without being exposed to a penalty. i have a letter from the brokerage house indicating it was their mishap, will that do anything to protect me?? . i have taken a distribution for 05.2005-12-15 09:26, By: ted, IP: [65.35.82.72]
L2: irs penaltyHello Ted:
The only mechanism of which I am aware is to file for your own private letter ruling seeking permission to make a catch-up distribution in ’06 for the missed ’04 distribution.
Furthermore, to avoid other penalties, you should disclose this on your 2004 return (as amended) and your 2005 return due in 3-4 months. The IRS will send you a deficiency notice for the 10% surtax plus interest and then they will stae collections when they are informed that a PLR is in progress.
This is not something that you should let drag out at least from your end as obtaining a PLR is easily a 6 – 8 month process.
TheBadger
wjstecker@wispertel.net2005-12-15 09:32, By: TheBadger, IP: [66.250.23.21]

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