It appears, as I work on my taxes, that I have underestimated the MRD on wifes IRA by $6.38. To me, I'm perfectly willing to pay them the
50% penalty of $3.19, if I interepret penalty correctly. Am I missing anything?snipped-for-privacy@verizon.net (Roy Starrin) posted:
Assuming you've done the math correctly, that would be correct. Of course, you should round down to $3.00.
However, an alternative would be to simply ignore your own calculation, and don't enter any penalty. The _de minimis_ policy practiced by the IRS, will likely result in their ignoring such a small amount. And, given the many potential math error pitfalls, who's to say you actually did miss the RMD?
(The _de minimis_ logic is that it would cost more in terms of time and postage expense, than the amount of money involved. I'm not sure what the current level is, but it was $10, at one time -- according to a friend who worked at IRS.)
Bill
When I left in 1994, the de-minimus amount for a field AUDIT was $100. I think the IRS raised that to $200 about 2000. $3.00 isn't worth worrying about.
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