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Retirement tax questions
When the IRS system detects the unreported amount, the tax return is kicked out to an examiner. In this case a smart examiner might observe that the IRA custodian issued a Form 5498 reporting receipt a rollover of the same amount and close the examination. A less savvy examiner, in the absence of a previously provided explanation, would issue a CP2000 that would require a response indicating that the rollover was indeed completed.
May 29, 2022
6:06 AM