dmertz
Level 15

Get your taxes done using TurboTax

@RB287a , I see now that you are talking about a late-taken 2023 RMD.  The law regarding this penalty has changed, so the draft instructions and form for 2023 Form 5329 have changed and no longer mention anything about requesting a waiver but instead mention that under certain circumstances such as yours the penalty would be 10% instead of 25% (and never 50%).  However, the portion of the tax code that permits the IRS to waive the penalty for reasonable cause has not been removed from the tax code, nor has the IRS said anything about being more limited with respect to granting waivers.

 

It appears that TurboTax has not yet implemented any changes to Form 5329 Part IX compared to 2022, so it's not clear if the ability to request a waiver will be removed from TurboTax.  If the ability remains, the instructions for requesting a waiver would likely remain unchanged from those provided for the 2022 Form 5329.