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How can I reduce the amount of tax penalty taking my MDR

Customer Question
How can I reduce the...
How can I reduce the amount of tax penalty for not taking my MDR during2015?
Submitted: 1 year ago.Category: Tax
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Answered in 4 minutes by:
1/7/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,888
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello

The penalty may be waived if you can establish that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. You need to withdraw the required amount as quickly as possible.

In order to qualify for this relief, you must file Form 5329 and attach a letter of explanation. You will be telling the IRS in your explanation that you took it out as soon as you knew or realized and point point out your past compliance.

After you view my response, please post below if you need more information or if you need no further clarification a positive rating is appreciated.
I know rating takes an additional step and I truly appreciate it when you take the extra time!

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Category: Tax
Satisfied Customers: 15,888
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