Form 5329 Question

Sorry, another question came up. My Dads accountant retired and the guy they handed his account to never filed a 5329. Not that I'd want to bore you w/ detail but when I asked him if he ever filed a 1040x he said no. It's not something they do everyday. He was waiting to speak w/ his "tax manager" about the the RMD defecit b/c he thought it would be better to just wait for "the notice". When I pointed him to

5329(and told hime I got it from the internet), he thanked me and said that's the ticket. For all I know he's just gathering the paperwork to hand to someone that knows the stuff but if I don't hear from him by next Wednesday, I'm going to use my accountant since it's a good opportunity to simplify things as it allows me to do both my dad's and my returns at the same time w/ the same accountant I've been using for 20 years. The firm my Dad uses is geared mostly towards businesses and w/ his buddy retiring there's no real bond to break. But that's neither her nor there..

So after reading the instructions for the 5329 it seems quite simple. That's were I usuallly get in trouble thinking things are simple. But can I just fill it out attach the statement and supporting docuementation, then file the 1040x to recoupe the taxes on the 17K he rolled over? At least I'd be getting out the 5329 out of the way.

From the instructions for form 5329

Waiver of tax. The IRS can waive part If you if you can show that.. (everything you guys told me) and it says to code it RC and the amount you want waived in parens e.g (3000)

Form 5329 as follows.

  1. Complete lines 50 and 51 as instructed.
50 Minimum required distribution for 2010 (see instructions) . . . . . . . . . . . . . . 50. 20K 51 Amount actually distributed to you in 2010 . . . . . . . . . . . . . . . . . . . .............51. 17K --
>minus the rollover(the total rmd on the 2010 1099 is 34k, the 1040x

is to reflect the 17k that was taken out and put back in october of

2010. 52 Subtract line 51 from line 50. If zero or less, enter

-0- . . . . . . . . . RC (3000)52. 0

53 Additional tax. Enter 50% (.50) of line 52. Include this amount on Form 1040, line 58, or Form 1040NR, line 56 53 -->> They want this on form 1040?? .. is that the 1040X (or whatever) the ammended form? Does this go on the ammended return? to get back the 17K paid on the rollover?.

It's confusing..

Last thing is the state taxes, shouldn't I have to file an amended NYS return?

Thanks again Steve

Reply to
steve-o
Loading thread data ...

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.