If you took a distribution for a retirement account then it was probably a Traditional or Roth IRA and the financial institution would have issued a 1099-R for the year that the distribution took place. You were required to report that 1099-R on your tax return. It a Traditional IRA then probably the 1099-R box 1 amount would be taxable income, of a Roth IRA then it may or may not be taxable depending on your circumstances. Either way failure to report the 1099-R at all will make the IRS assume that it was all taxable and they will bill you.
What does the letter say? What tax year is this for?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
