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penalty waiver for early withdraw

artisgam
Level 1

How to submit on program

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8 Replies 8
IRonMaN
Level 15

Hurry up and wait for the IRS and Intuit to get the form finished up.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
Terry53029
Level 11
Level 11

You fill out form 5329 with exception code 12 which includes â€¢ Coronavirus-related distributions. The form is ready. I think @IRonMaN is talking about the form to carry the income over three years. ( see you give good mind reading classes). ðŸ˜

athaureaux6
Level 7

Just wait, they are supposed to have ready by Feb. 18th. Scroll down the 1099R and will see the Coranavirus Related Distribution, put a check and that should waive the 10 % penalty once it is updated and also in 8915E. No rush. 

Terry53029
Level 11
Level 11

If you don't want to carry over the income, you just fill out the 5329, and no need to wait for the 8915. I have a client who took out $10000 and just wants to pay the tax this year.

 

IRonMaN
Level 15

To be honest, I hadn’t even looked at an 8915E yet.  But everyone around here has been voicing their frustrations about the form not being ready and it was holding up a bazillion returns.  I did look and the most recent draft form of the 5329 does show COVID under exception 12.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
athaureaux6
Level 7

I think I am getting blind. Where is that Exception 12 in form 5329. Appreciate it. Thanks

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IRonMaN
Level 15

https://www.irs.gov/pub/irs-dft/i5329--dft.pdf#page=5

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
athaureaux6
Level 7

Ok I got it, if you enter the amount of the distribution on Line L, it will transfer code 12 to waive the penalty. Thank you.