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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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Took out money from my 401k on a hardship. I paid 10% up front

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Took out money from my 401k on a hardship. I paid 10% up front in 2007. How can I get IRS off my back?
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.
Hello and thank you for using Just Answer. Did you report the withdrawal on your 2007 tax return?
Customer: replied 7 years ago.
The only report was made by Schwab with a 10% payment from the withdrawl.
Expert:  Marvin,EA replied 7 years ago.
When you made the withdrawal from your 401K the amount withdrawal should have been reported on your 2007 federal tax return with your other taxable income.

Since the amount of the withdrawal was not reported on your 2007 return the IRS added the amount of the withdrawal to your other taxable income and computed additional tax. You should contact the IRS at(NNN) NNN-NNNNto make payment arrangement and apply to have any penalties abated due to reasonable cause.
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