Kea

After getting this additional information, I may not need to contact IRS. (Still not sure yet.) I may just do the 1040X with the new documents and send it with the CP2000. This is all related to the big IRA snafu I wrote about last month. I've been trying to find out what info the bank actually sent to IRS and if they were able to match it up to the CP2000 notice. Turns out the bank sent a "corrected" 1099R. I'll do a 1040X showing the RMD, attach the CP2000 and write a letter explaining the issues. One thing I don't like on this credit union's 1099Rs, is that they only show the first line of the name of the account. So, it this case it only displays the client name and leaves off the 2nd line that shows his mother's name and the beneficiary designation -- even though that is on the account. I'll call the client this evening.

I agree it's preferable to fax while they are on the line. Just trying to find out my options if that one is not available. Any problem with the IRS accepting (receiving) a MyFax fax? I know there have been comments previously that IRS will only fax to a physical machine.

MAS - thanks for the link. I knew it wouldn't be too challenging, just haven't had to do it before. I am not an EA, but I am an RTRP (not like that matters anymore). I actually switched my "landline" to a MagicJack a couple of years ago & it does work great (as long as there is a good internet connection). However, in this case, I may be away from my office and not have access to a physical fax machine. I'm still waiting for some information before determining if I even need to call IRS. I hope to get that today. Could I fax the authorization to IRS, say over the weekend, and then call on Monday / Tuesday? Would they be able to "find" it? Thanks!

I may have to discuss a CP2000 with the IRS soon. But it's possible that I won't have access to a fax machine at the time I'm calling them. Can the authorization be sent by e-mail? I may be able to send it from my "MyFax" account, but I've never used it for outgoing faxes. (So I'd have to learn how to do that!)

There's also Gold Key where you have to insert a USB gizmo before the hard drive will work. Note: I haven't used it, yet, because I've been too afraid to encrypt my computer and then find out I did something wrong and end of killing it. I guess I need to test on an unused PC to make sure I know what I'm doing first. That way if I kill something I haven't done any real damage.

My deepest condolences.

Me, too. But I will acknowledge that "rollover" may not be the correct term.

When traveling to Mexico, you do not need any kind of visa if your trip is less than 72 hours. If your trip is for between 72 hours and 180 days you can get a tourist visa at the border. No questions about bank accounts or anything like that. Just name, address, passport type info. If you plan to make money in Mexico or stay there for longer than 6 months, those visas require a lot more info - including income and / or total assets. But if I just want to cross the border for some shopping and dining for an afternoon, it's no big deal. As I understand it, the amount of paperwork and approvals for a Mexican citizen to come to the US - even if just for an afternoon of shopping - is very expensive and very involved. I don't know all the rules, but I've heard it does include proving you have a job and other reasons for returning home to Mexico.

Joan - that is my understanding as well.

Thanks Jack. I always wondered what happened to the Dinky Twinkies. I knew Ding Dongs were basically the same thing, but didn't know the evolution / history.

Yum! They also have the Pinguinos, which are like Ding Dongs. As a kid I used to like Dinky Twinkies. I think they were Hostess, too. They were the shape of a regular Twinkie, but they were chocolate and wrapped in aluminum foil.

I saw them a few weeks ago in Mexico. They appeared to be actual Twinkies, but they weren't Hostess. I think they were made by Marinela.

Yes, it does get complicated. That's why initially left out the original part, because I thought it was a separate issue. I learned yesterday that it was all tied together. I'll get the full, hopefully correct, story from the bank tomorrow. That will determine what, if anything, I need to discuss with IRS.

Your explanation is correct. I got the transaction history from the CU last year when preparing the 2011 return. He rolled the IRA to an inherited IRA (i.e beneficiary IRA). I did not get the forms the client filed with the CU, but I'll check to see if the CU still has those. Yes, there was another error at the time of the initial rollover. It was initially rolled to an individual account, but that error was caught at the time it was made. It was then moved to the beneficiary IRA. (I'm sure this is what caused the inital 1099R problem.) Perhaps "rollover" is not the proper word. I agree that I will need to discuss with CU and get all documents before discussing with IRS.

You are correct. It looks like there are errors all over the place. They 1099R for the RMD was only $678, so it should be minor for the CU to cover. Yes, I'm keeping notes.

The plot thickens. There is a piece of the story that I had not previously included because I didn't think it was related and wanted to keep my questions as straightforward as possible. When the client received the original 1099R for the 2011 tax return it was shown as a total distribution when, in fact, it had been rolled over to an inherited IRA. (Box 7 was correctly coded as "4" for death.) I did get a copy of the transaction for my files. I then entered it in the tax software - matching the 1099R and then indicating that the amount was rolled over. Last month, while I was out of the country, the client received a CP2000 from IRS showing the amount as taxable. Since I had already shown the rollover in the tax return, I asked the client to fax or email me the CP2000. He doesn't have e-mail or fax (I suggested having the credit union send it to me for him). He did take the notice to the credit union to get additional documentation. Well, the credit union took over from there (even though I was still accessible by phone, fax & email - just not in person). They sent something to IRS - ? I had been under the impression that they sent a corrected 1099R and that I would be getting a copy of that tonight. (My plan was to discuss, with client's permission, to follow-up with IRS on Monday.) A few days ago, the client let me know he had received the RMD and a 2011 1099R. When client brought CP2000 and 1099R to me, it turned out that the only 1099R is for the RMD, there is no corrected 1099R to show distribution was a rollover . They explained to him that his mother should have taken an RMD in 2011, but that didn't happen before she died. So, even though the RMD is for Mom, it's in client's name. And no RMD has been set up or mentioned for 2012 for client. So in their trying to fix one problem they created more. I'll be discussing with the credit union & IRS next week. Thanks for the education! I'll need it.

Thanks for all the info. I just knew this would not be a "simple fix" on my part. This gives me a lot to work with. In this case the ORIGINAL owner was the client's father who passed away in 2010 (in his 90s and was presumably taking RMD). The mother inherited and passed away in 2011. I will have to check the status of any RMD for 2011 to Mom with the client. Perhaps the credit union is trying to adjust the RMD for Mom rather than for my client? I need to see the actual documents. I just wanted to make sure I understood all the tax rules / implications before meeting with the client.

Thanks jainen!

I'll find out today what year the credit union used for the 1099R. I agree that the first RMD should have been for 2012. But if they used 2011, does that cause any problems. When I file the amendment, do I need to calculate the penalty or does the IRS calculate it and send a bill?

Sounds good. I hope so. I know one of the officers (not sure if that's the right title) there, so I think there is a decent chance. We'll see. (fingers crossed!) That officer is actually the one who referred the client to me in the first place.

Thanks so much for all the advice! I really appreciate it. This is actually a credit union. They are not "small" as they have several branches. But they are nowhere near as big as a Bank of America. I'm hoping the credit union will pay the fees - I think there is a chance. But no, I'm not "banking" on it. (Sorry, I couldn't resist!)

Thanks for the penalty suggestions. I'll discuss them with the client on Saturday. But now that the bank is distributing the originally missed amounts - does that cause 2011 to be amended or does it go on 2013? He is cash basis, so I would "assume" it goes on 2013. But he said the 1099R says 2011. Is that something else that the bank will have to correct? Or, did they do that part correctly?

I'm hoping the bank will take care of the penalties. I just want to make sure everything gets reported for the proper year(s).

Client inherited IRA from his mother in 2011. Bank recently realized they were supposed to be distributing RMD. They have recently issued a 1099R for 2011 and told him to ask me if this would require amending the 2011 return or how it would be reported. Note- I have not seen the documents yet & don't think the bank would put it on a 2011 1099R if the money was distributed in 2013. Client will bring them to me Saturday. I know that missed RMD result in 50% tax, but I have not actually had to deal with this situation before. Any advice about how to proceed is welcome. I assume if the 1099R was issued for 2011 that would need to be corrected to 2013.

Wiki suggestions for VNA - but none of them seems to fit: http://en.wikipedia.org/wiki/VNA Google also came up with Visiting Nurse Association.