thetaxdon wrote:

- quote -

One additional advice on this.

If at first you don't succeed, (try try again!) and you
need to send a follow up letter to the service center, make
sure to address it to "Adjudications Branch."

ChEAr$,
Harlan Lunsford, EA n LA
Sun 5 Feb 2006

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Chances are good on getting a refund of the penalty IF you
are persistent in followup letters and phone calls. I would
send one letter with the return and one separate after about
six weeks. Don't give up. Write the letter as Harlan
stated and emphasize how you took prompt action as soon as
you discovered the error. Remember that you will now have
two distributions in 2006.

Don in Colorado

<< ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== >

Chances are good on getting a refund of the penalty IF you
are persistent in followup letters and phone calls. I would
send one letter with the return and one separate after about
six weeks. Don't give up. Write the letter as Harlan
stated and emphasize how you took prompt action as soon as
you discovered the error. Remember that you will now have
two distributions in 2006.

Don in Colorado

<< ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== >

"jj" <jj[at]surewest.net> wrote:

- quote -

Slim. I wouldn't rule it out, but it wasn't because you
switched advisors that the distribution wasn't made, you
simply forgot.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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jj wrote:

- quote -

about 99.4% IF you do it right.

Two schools of thought on this.

1. You go ahead, compute the 50% on form 5329, add it in and
pay your taxes, plus include a letter with the return
pleading for the return of the excise tax, since you (I
hope, obviously) have "reasonable cause' (and be sure to
use that phrase) for the error.

2. Do nothing, and IF you ever get a letter from IRS,
explain it.

Remember now, you are not my client, so I can not, and am
not, advising you. I've done #1 for a client, and
eventually got the excess excise tax back. Others have
taken the #2 route however.

ChEAr$,
Harlan Lunsford, EA n LA
Fri 3 Feb 2006

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I did not take a minimum distribution from my beneficiary
IRA in 2005 due to a switch in financial advisors. As soon
as I realized the mistake, I made the withdrawal-the first
week in 2006. What are my chances of the IRS waiving the
50% penalty?

Thanks-JJ

<< ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== >