gindie wrote:

- quote -

Never fear; the end is not near.

You handled it correctly and IRS cares little about such
incongruity.

ChEAr$,
Halan Lunsford, EA n LA

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gindie <gin...[at]hotmail.com> wrote:

- quote -


You have nothing to worry about.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"gindie" <gindie[at]hotmail.com> wrote:

- quote -

You may get an IRS letter. If so, either respond with the
payment they compute in a timely manner or give them the
explanation you gave above. On such a small amount I would
expect a very tiny amount if a letter is sent at all and its
usually easier just to pay it and get it behind you than
playing letter tag with them on such a small matter.

Mike

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

During 2006, wife withdrew a small amount of excess same-year
contributions from her SIMPLE IRA.

Fidelity performed the transaction and sent a letter at the time
indicating the taxable amount (the earnings) of $13. However, when
the 1099-R came Fidelity left the "Taxable Amount" box 2a blank.

Using TaxAct (and also TaxCut), I couldn't find a way to get the
taxable amount ($13) onto the correct line of Form 5329 (line 1 and
then 3) UNLESS I put the $13 into Box 2a of the 1099-R worksheet
provided by the software.

So, when I e-filed, the 1099-R that I completed in the software
didn't exactly match the 1099-R that Fidelity filed. But, the
penalty of $1 did correctly appear on 1040 line 60.

Do I have anything to worry about. And, if so, how long do they
normally take to discover such things?

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >