This is in regards ***** ***** insufficient distributions
from IRAs in past years by my father now deceased.
He was a widower and had a grantor trust which included holdings of two IRAs. At the time of his death the trust became irrevocable. I am the executor of his estate and the trustee of the trust. He filed his own income taxes
- no outside assistance.
In reviewing his past income tax filings
I've become concerned that he was not taking enough distributions from his IRAs to satisfy the RMD requirement. I'm certain this was the case for 2010. Unfortunately, I do not have the a complete set of FMVs for tax years
2009, 2011 & 2012, but interpolating between the FMVs I have, I'm reasonably certain the distributions were insufficient. FYI, I am aware that there is a 50% tax
on the difference between the RMD and actual distributions as well as interest
I have no idea why my father did not take sufficient RMDs. It is impossible to get an answer to that question with the information I have. I've contacted both IRA companies requesting Dec 31 FMVs for the "blank" years from 2005 to present. One company has indicated they will provide me with the FMVs within 1-2 weeks. The other company will not without a court order.
I assume I must file a Form 5329
for the tax year 2010 for which I know what the FMV basis was as well as the actual distributions and the RMD. Please confirm.
Should I also notify the IRS
that I suspect insufficient distributions were taken in tax years 2009, 2011, 2012? If so, do I simply write them a letter? I assume they will have copies of the FMVs and can (and will) determine the amount owed.
Any other guidance on how to deal with this situation will be much appreciated.