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I took a $5000 withdrawal from my IRA and returned it within…

I took a $5000...

I took a $5000 withdrawal from my IRA and returned it within 60 days. I made the withdrawal on 12/5/2015 and returned it on 1/29/2016 within the 60 days. So it should be tax free. I didn't report it on 2015 due to that. Now I got a letter from the IRS saying I owe taxes on that withdrawal. How do I show them I returned it

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

The 1099-R from Merrill Lynch reported the $5000 on line 1 and 2. It should only have been on line 1 I think

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Answered in 15 minutes by:
3/10/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,275
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and can help you with this.

Just write them a letter explaining the money was returned within 60 days. Provide a copy of your statements showing the distribution and then the money going back into the account. That should clear it up pretty quick.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,275
Experience: Adjunct Professor
Verified
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