Verification that early IRS withdrawl is parts of

L1: Verification that early IRS withdrawl is parts of Starting in Aprl 2002, I began withdrawing monthly from my IRA under the SEPP rules, no issues. I filed my 2003 Federal Taxes on time as I normally do. Recently, I received a letter from the IRS, they’re trying to charge me a 10% penalty as if the SEPP payments were simply early IRA withdrawls, rather than SEPP payments. I’ve spoken tothe Bank that handles my IRA account, all theBankcan provide is another copy of the 1099 form which do not mention anything other that what was paid etc. How do I prove, what paperwork do I provide, to the IRS that will satisfy them that these payments are part of a SEPP account and allow me to avoid the 10% penalty?2005-11-16 08:06, By: Tony, IP: [69.183.57.34]
L2: Verification that early IRS withdrawl is parts ofHello Tony:
I am going to guess that you have recieved a correspondence audit letter from the IRS. You will need to prove up:
1. Your age & life expectancy.
2. Methodology used.
3. Beginning IRA balance(s).
4. Computation of annual distribution amount.
5. Actual distribution amounts for 2002/2003.
Usually, it is prudent to hire a tax CPA or lawyer that specializes in this area; e.g. audits & IRC 72(t).
TheBadger
wjstecker@wispertel.net
P.S. Generally, these letters have been sent to taxpayers that received more than one 1099R and/or did not correctly complete form 5329. Is this your case?
2005-11-16 08:45, By: TheBadger, IP: [66.250.23.21]

L2: Verification that early IRS withdrawl is parts ofDid you or the Bank calculate the SEPP amount? Some instituions provide their annuitants with this calculation and, when elected, code the 1099-R with a “2” distrubution code which avoids the 10% penalty. No mystery to the IRS then.2005-11-16 08:51, By: Deb, IP: [64.132.65.254]