It depends. While the IRS may not have recognized that an RMD wasn't taken in previous years, a routine audit could change all this. Also, with the advent of AI and improved technology, the likelihood becomes even greater that these missed payments could be detected at some point.
Financial institutions are required to report the year-end fair market value of your IRAs to the IRS using Form 5498. This form includes details about the year-end account balance, which is the basis for calculating your RMD for the following year. While the IRS does get this information, it's true that enforcement of RMD compliance may rely on tax returns or audits rather than proactive monitoring.
If an RMD is missed or not fully taken, the IRS imposes a steep penalty—50% of the amount not withdrawn. That said, you can request a waiver of the penalty if you can show reasonable cause for the shortfall and corrective action was taken promptly.
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