Form 5329

Form 5329

A form that one files with the IRS to report excise taxes related to early or otherwise taxable distributions from an IRA, education savings account, health savings account, or similar structures.
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Form 5329 - Additional Taxes on Qualified Plans and Other Tax-Favored Accounts (Return for Individual Retirement Arrangement Taxes)
In addition, the court held that the taxpayer was subject to a penalty for failing to file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, since the taxpayer could not show reasonable cause for his failure to file.
A taxpayer who has made an excess contribution is required to file Form 5329, and failure to file the form can result in a penalty of up to 25% of the excise tax.
In 2008, the IRS assessed deficiencies against Paschall and his wife totaling more than $425,000 for tax years 2002 to 2006 for the excise tax on the excess contribution of $1,272,802 to the Roth IRA in 2000 and assessed penalties of more than $103,000 for the same years for failure to file Form 5329.
If a taxpayer wants the IRS to waive the penalty, the waiver request must accompany Form 5329.
If Form 5329 and the waiver are submitted on a timely field tax return, the taxpayer is unlikely to hear whether the waiver has been granted.
This is disclosed by attaching to Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, a statement that the distribution is not subject to the Sec.
Form 5329 should be attached to mom's 2006 return and a waiver requested.
Though the information we entered should have been sufficient for the software to automatically generate form 5329 to determine the additional tax due on the excess contribution, we had to specifically request this form.
The elections must have been made on Form 5329, Additional Taxes Attributable to Qualified Retirement Plans (Including IRAs), Annuities, and Modified Endowment Contracts (Under Section 72, 4973, 4974 and 4980A of the Internal Revenue Code), and filed (by the due date, including extensions) with the individual's income tax return for 1987 or 1988.
Form 1040 Series (including Prior Year payments) -- Estimated Taxes (Form 1040ES) -- Installment Agreement Payments -- Form 4868 (Tax Extension) -- Trust Fund Recovery Penalty -- Form 1040X (Amended Tax Returns) -- Form 5329 - Additional Taxes on Qualified Plans and Other Tax-Favored Accounts (Return for Individual Retirement Arrangement Taxes)
Early Distributions from Retirement Plans -- Taxpayers subject only to the ten percent early distributions tax on amounts received from IRAs and certain retirement plans before age 59-1/2 may no longer have to file Form 5329, Additional Taxes Attributable to Qualified Retirement Plans, but will merely put the tax amount on Form 1040.