Michael Dauria wrote:

- quote -

You could have made contributions to your 2003 tax year up
until the due date of your tax return in 2004. What has
probably happened, is that you either failed to make it
clear to the trustee that your 2004 contribution was for tax
year 2003 (not 2004) or the trustee failed to report your
contribution properly. Look at the Form 5498 that the
trustee sent to you and see what it says for 2003
contributions. Ditto for 2004 contributions. A trustee will
assume that any contribution made in a tax year is for that
tax year unless you inform the trustee that the contribution
is for the prior year.

--
Alan
http://taxtopics.net

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Michael Dauria wrote:

- quote -

You could have made contributions to your 2003 tax year up
until the due date of your tax return in 2004. What has
probably happened, is that you either failed to make it
clear to the trustee that your 2004 contribution was for tax
year 2003 (not 2004) or the trustee failed to report your
contribution properly. Look at the Form 5498 that the
trustee sent to you and see what it says for 2003
contributions. Ditto for 2004 contributions. A trustee will
assume that any contribution made in a tax year is for that
tax year unless you inform the trustee that the contribution
is for the prior year.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Michael Dauria wrote:

- quote -

You could have made contributions to your 2003 tax year up
until the due date of your tax return in 2004. What has
probably happened, is that you either failed to make it
clear to the trustee that your 2004 contribution was for tax
year 2003 (not 2004) or the trustee failed to report your
contribution properly. Look at the Form 5498 that the
trustee sent to you and see what it says for 2003
contributions. Ditto for 2004 contributions. A trustee will
assume that any contribution made in a tax year is for that
tax year unless you inform the trustee that the contribution
is for the prior year.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Michael Dauria" <mdauria[at]BeeYou.edu> wrote:

- quote -

Sounds like you forgot to tell the manager of the IRA, or
the IRA manager erred, and the 2004 payment was credited to
2004, not 2003.

Do you have a record that shows that you told the IRA to
which year to attribute the contribution? If so, ask the IRA
manager to correct the tax records.

--
http://www.standards.com/; See Howard Kaikow's web site.

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Michael Dauria <mdauria[at]BeeYou.edu> wrote:

- quote -

Are you certain the IRA Custodian credited the funds added
in 2004 as 2003 funds and not 2004 funds? If the IRA
custodian gor it wrong, you either have to get them to fix
it or you are indeed in trouble.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Michael Dauria wrote:

- quote -

Well, you have the gist of it, I think. Just know that you
can't deduct more than 3,000$ for 2003 (if you're under 50),
so if you were also counting another 3000$ you made in 2004,
that was FOR 2004 and not for 2003. That may be the
sticking point.

However I don't see how IRS would "want" 3000$ more in
taxes. A percentage of that possibly, depending on your
marginal tax rate.

ChEAr$,
Harlan Lunsford, EA n LA

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mdauria[at]BeeYou.edu (Michael=A0Dauria) wrote:

- quote -

Assuming you did not exceed earnings limits, and that you
were not age 70, you were entitled to deduct $3,000 or less
for an IRA contribution ($3,500 if over age 50) -- and you
had until April 15, 2004 to actually deposit the funds. You
were also prohibited from making contributions to both a
traditional IRA and Roth IRA.

But barring any of those qualifications, there doesn't
appear to be any problem with what you did.

Possibly, the IRA trustee -- bank, broker or whoever --
erred in crediting the deposit in 2004 as a contribution for
that year, rather than 2003. I would start by checking with
your trustee. If that was the problem (as once happened to
me), they should be happy to correct their reports to the
government ... and should issue you a letter of explanation,
stating it was their error. You should attach a copy of
this to your letter replying to the IRS about their claim
for additional taxes.

However, I must note that the $3,000 IRA deduction _from
your gross income_ should not create a tax bill of $3,000.
Maybe there's another problem, as well?

Bill

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Michael Dauria wrote:

- quote -

In order to treat a 2004 IRA contribution as being made in
2003 you have to meet two tests: (1) the 2004 contribution
must be made before the due date of your return, and (2) you
must indicate in writing to the IRA custodian that the 2004
contribution is for the 2003 calendar year (most mutual
funds make this easy for you by providing a box to check on
the deposit form that accompanies your check). See Prop Reg
1.219-1(d)(2).

If you missed either of these steps, then the 2004 deposit
is treated as a 2004 contribution to your IRA.

--Chris Ballard

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"Michael Dauria" <mdauria[at]BeeYou.edu> wrote:

- quote -

Yes. You can even contribute after you file the return, as
long as the contribution is made by April 15. See IRS
Publication 590.

- quote -

It probably is. Custodians will apply IRA contributions to
the year in which they're made unless it's clearly indicated
that it's for the prior year. The time to make sure that
the custodian did it right is when the contribution is made.

If you can prove that this was a 2003 contribution
misreported by the custodian, you shouldn't have any IRS
problem.

--
Phil Marti
Clarksburg, MD

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I received a letter from the IRS saying I made a mistake on
my 2003 tax forms, they want 3000 dollars for the mistake. I
still need to go to the bank to get records to see what they
are talking about but I have a question about IRA deposits.

In 2003 I made deposits to my IRA, at the beginning of 2004
I made some deposits to my IRA to bring the total close to
3000 dollars. From what I have read, I can add money to my
IRA right up until I send in my tax forms, so I can include
the money I put in the beginning of 2004 into my IRA on my
2003 tax forms. Can someone confirm that its ok to do this
and claim this on my 2003 taxes? They say that I put in less
money in my IRA that I claimed to have put in, I believe the
difference is probably the money I put in early 2004.

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