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My former financial advisor put me in a 419e plan. The required

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My former financial advisor put...
My former financial advisor put me in a 419e plan. The required 8886 form was NOT filed, but no deductions were claimed either for the 2008 year. What should be done to correct if necessary? and what penalties might I incure?
Submitted: 8 years ago.Category: Tax
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Answered in 1 hour by:
5/1/2009
Tax Professional: Ed Johnson, Tax Preparer replied 8 years ago
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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DearCustomer

 

You need to flie this right away. The penalty is as much as 10,000 for individuals. Not every single failure will produce a penalty. Most penatlies are related to reportable transactions.

 

If there is a reportable transaction you should file right away and include a cover letter explaining the circumstances.

 

You can read more about the penalties and conditions for penalties IF ANY at this link:

 

Scroll to penalties: http://www.irs.gov/instructions/i8886/ch01.html#d0e333

 

 

Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Verified
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