Missed RMD - 12 years

[dlabrahams]

I have a new client with an IRA from 2008 when his mother passed away, he was told that he did not need to take RMD's until he was 18 which was last year, although they still didn't take one for some reason.  His CFP has told him that the audit look back only 3 years so he should only take that amount.  I can't find anything on the audit information so that is question one.  Second question is, is there any limit to the number of 5329's they want if I need to do all years?  Thanks!

[sjrcpa]

You do one 5329 for the current year begging for forgiveness (penalty abatement).

Tell client to get new financial advisor, too. Failure to know these rules, plus saying "the audit look back only 3 years" are grounds for termination IMHO.

[BobKamman]

I suppose it’s not as bad as it sounds because the RMD would be less than 1.5% of the balance for most years. And he should be able to convince IRS to waive the penalty. Have returns been filed for him, because of other income? Otherwise, the 5329 is a stand-alone return, there is no statute of limitations if no return was filed in the first place. File one for every year, but the waiver explanation can be the same.

I hope you aren’t also doing returns for the parent or conservator who is responsible for the mistake, or the Commission-Filled Pockets guy who is a tax law expert also, unless they have agreed to pay any penalties that are assessed.

[dlabrahams]

I agree with the firing, they are just waiting for me to get the info I need from the guy first!  I'm sorry though, are you saying only one 5329 for the 2019 and none others?  I've always done one per year.

[dlabrahams]

Thank you.  There's someone in charge of the trust who apparently can't stand the dad so they have refused to provide any information.  Family!  He does have other income so it will be quite the return!  Thanks for your help.

[BobKamman]

If the IRA beneficiary is a trust (as it should have been, in this situation) then the young man who is the beneficiary of the trust does not have a tax problem.  The trustee, who should be filing Form 1041 and/or Form 5329, has a problem.  

[Intuitjhaze]

hey @accoun5 moving this thread to the Lacerte forum. 

[accoun5]

Thanks so much for taking the time to move this to the Lacerte Forum.

[IRonMaN]

Moving a post three years later?

[Frustrated-in-IL]

Moving a post three years later?

Why not?  Intuit has solved all other problems associated with the program and has nothing else to do.

[Intuitjhaze]

ha @IRonMaN that would definitely be a weird thing to do. feel free to chime in with your expertise on the new thread here in the Lacerte forum!

@accoun5 trying to keep things tidy and orderly in the community. @IRonMaN and @Frustrated-in-IL have been known to help out a time or a hundred, so they may be able to help you and your situation out. *fingers crossed*

[qbteachmt]

@accoun5 The new topic for using Lacerte is at this link:

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/re-missed-rmd-12-years/00...

[dlabrahams]

It was so old that I got annoyed at getting a bunch of emails ... until I finally looked and realized it was my post in the first place!  

[qbteachmt]

It's called Zombie thread. You can remove the checkmark for "Email me when someone replies."

But, Hey! Nice to see you around.