I have never known the IRS to forgive this penalty ... but agents have some amount of flexibility. It is remotely possible that you'll find one sufficiently sympathetic. From their perspective though, they've heard a lot of excuses about why penalties shouldn't be owed, and not all were honest.
Best idea would be for you to list dates, treatments, events that would have affected your life and made you less likely to worry about the tax consequences. The IRS loves facts.
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Submitted 128 days ago...
IRA Rollover
I called Merrill Lynch in 10/08 and sold my mutual funds. I deposited check in Wachovia account money market, as I wanted wait to see what I wanted to do with it. I parked it there right after Christmas.
I went over the 60 day rule by about a week. I am a recent cancer survivor, and the chemotherapy has diminished my memory somewhat. I am not as mentally sharp right now.
About three months later, I used the money to purchase a 10 year annuity.
It is classified as an IRA. Will the IRS grant me a break due to the few extra days it took me to move it, or will they make me pay a 10% penalty?
If this is beyond your scope, just let me know. I just want it protected. It's all the money that I have left. Medical debt and the economy has lift me in bad financial shape.
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Answer 1 / 3 - Submitted 128 days ago...
Answer 2 / 3 -
Submitted 124 days ago...
Should I call the IRS to let them know ahead of time, or should I wait to let them figure it out? I will get a 1099 in the mail next year, I would think. I think I should just leave it alone. Maybe they won't notice. Thoughts? This better be confidential! Please send me something to say it is, for heaven's sake!
Answer 3 / 3 -
Submitted 124 days ago...
As far as I can tell, any "indirect" rollover (where the taxpayer holds the money for some period of time) gets questioned, and the taxpayer has to show where the funds were finally deposited and when.
It typically takes the IRS 15-18 months to raise this inquiry.
The IRS doesn't have to troll the internet to find stuff like this, their computers automatically put out the inquiry emails. They look for the bigger stuff, like scams and schemes, not individuals.
This Question was awarded 122 days ago therefore you can no longer post an Answer. However you may post a comment below.
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Submitted 122 days ago...
Expert 703 answered in a timely fashion, and was the only person who did answer.
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