PATAX
Level 15
04-11-2022
10:07 AM
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Lisa you are exactly correct. I had this happen this tax season. I had the client immediately take out the 2021 distribution and immediately take out a separate 2022 distribution. I explained this to the IRS on the appropriate explanation form statement to request a waiver of the penalty. If you don't hear from the IRS then that means they accepted the explanation and there is no penalty. Just my opinion