I rolled over my CD IRA in 2014. I took my RMD out. Now I have a notice from the IRS stating that I owe over $10,000!
What should I do? I did take my RMD and paid my taxes on it. The rest of the funds, I rolled over into a traditional IRA. I am 100% sure my tax consultant did everything correct. What should I do now? What could the problem be?======>> A CP2000 is simply a notice that the IRS sends when the information they have on file for your income, credits, and deductions is different from what you put on your tax return. A CP-2000 asks that you review what you filed and determine if it is all correct. You have the option to agree, partially agree, or disagree with the information the IRS has on file for you. If you disagree with the changes the IRS wants to make to your tax return, you need to respond to the CP-2000 by the response date on your notice. Otherwise, the IRS assumes that you agree with the changes. Check the box that states that you disagree or partially agree, and prepare a protest.As your return was filed with the IRS by the tax preparer you need to get professional advice form the tax advisor. Then the tax preparer ?d let you what you need to do.
The IRS is requesting my 5498 IRA Contribution information or similar document.===> Form 5498 will report amounts that you roll over / transfer from other types of retirement accounts into your IRA. When you claim a deduction for your IRA contributions, you should reference the amounts on the Form 5498.As you made contributions to your IRA in the preceding tax year, you can expect to receive IRS Form 5498.The "custodian" of your IRA, typically the bank or other institution that manages your account, will mail a copy of this form to both you and the IRS. If you have an IRA but made no contributions for the year, the custodian generally won't send you a Form 5498. Form 5498 tells you the FMV of all the investments in your IRA account. If your IRA is a traditional IRA, the IRS requires you to begin withdrawing money from the account starting with the calendar year you turn 70 1/2. When the custodian of your account prepares your Form 5498, it must report the amount of your required withdrawals or distributions.If you fail to withdraw a sufficient amount of funds from your IRA, the IRS penalizes you with a 50 % tax on that distribution amount. The percentage of all funds in the account that you are obligated to withdraw, known as the RMD, increases as you get older
What went wrong?? Can anyone give me some information on what to do? Is this an easy fix? I am worried.=========>>>>>>>>>As said previously you need to contact the tax preparer filing the return with the IRS for more info and then you may need to contact the IRS