Have a Tax Question? Ask a Tax Expert
Hi, my name is Mark. I will be happy to help you with your questions. Please give me a few moments to prepare your response.
You likely received 1099-R for your distribution from your IRA account. The IRS will match this amount to your tax return. So the IRS is very likely to catch the omission. The IRS will send you a notice of the changes to your tax return. The IRS will detail the changes and whether the changes result in an increase or decrease to taxes. If there is an increase then additional penalties and interest will be added.
No you will not be prosecuted for tax fraud. This is an error. The intent was not to evade taxes. Besides, you will not be able to pay your taxes if you are in jail :)
The IRS will send you a notice asking if you agree with the proposed adjustment. If you agree, you can pay any amount that are due or set up a payment plan.
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