What is the name of your state? California
For tax year 2014, wife and I mistakenly contributed the double the max amount to a nondeductible TIRA in her name, instead of the max allowable for each of us. Custodian error or ours, we're not sure. (EDIT: I made a mistake in posting initially, the IRA was NON-deductible, so the excess never cost the IRS anything)
I discovered this when filing 2018 taxes and tracing the histories of our retirement accounts. Since we'd also contributed the max in 2015-7, we determined the way to resolve was to skip her 2018 contribution and let the 2014 excess roll forward.
In April 2019, together with my 2018 return, I filed a Form 5329 for the four years 2014-2017, calculating the penalty for each, and mailed IRS a sizable check. It sucked, but I figured I should do the right thing.
Today I got two CP504s levying additional amounts for 2015 and 2016. I assume two more are enroute for the remaining years. They allege an amount owed, interest and failure to pay penalty, implying they've told me before. I received no such demands, only some very cryptic letters acknowledging receipt of my 5329's. This was a sleeping dog before I kicked it. Anyone familiar with this situation and have advice?
For tax year 2014, wife and I mistakenly contributed the double the max amount to a nondeductible TIRA in her name, instead of the max allowable for each of us. Custodian error or ours, we're not sure. (EDIT: I made a mistake in posting initially, the IRA was NON-deductible, so the excess never cost the IRS anything)
I discovered this when filing 2018 taxes and tracing the histories of our retirement accounts. Since we'd also contributed the max in 2015-7, we determined the way to resolve was to skip her 2018 contribution and let the 2014 excess roll forward.
In April 2019, together with my 2018 return, I filed a Form 5329 for the four years 2014-2017, calculating the penalty for each, and mailed IRS a sizable check. It sucked, but I figured I should do the right thing.
Today I got two CP504s levying additional amounts for 2015 and 2016. I assume two more are enroute for the remaining years. They allege an amount owed, interest and failure to pay penalty, implying they've told me before. I received no such demands, only some very cryptic letters acknowledging receipt of my 5329's. This was a sleeping dog before I kicked it. Anyone familiar with this situation and have advice?
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