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Hello and thank you for using Just Answer,The last thing you really want to do is the last thing you suggested (just hope they don't ever notice at IRS). You are correct it has to be an actual IRA for the deductions to matter.To really clear his up you need to go back and amend the returns that you filed that show the amount to cliamed for the deduction.
clear this up * sorry
You would not be prosecuted you will have interest to pay on the amount you will owe becuas ethe deduction claimed that you really were not allowed to claim.
Okay, thank you. I'm wondering whether it's worth opening an IRA and taking distributions from that, or just bite the bullet, work with a CPA and clear it up...or do "the last thing" as you said.
Do not do the last thing you suggested!!
You need to work with a tax professional that can go back and clean this up for you.
Even opening an IRA at this point is not enough.
Ah...the "last" thing I want to do, I misread. Okay, thank you, XXXXX XXXXX your help. Mainly I suddenly panicked that they'd toss me in jail for fraud, but if I clear it up, it's just a matter of fines and penalties I suppose.
No you will not be tossed in jail because you are attempting to correct this situation.
ANy penalties would be in the form of interest on the balance due.
Very good, thanks again, much obliged.
Sorry, I jumped off to soon. Will do re the survey, thank you.
Thank you Robin, I appreciate that.
All the best