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kevintemo
New Member

Can I claim a tax levy on a recent 401K early cash in to pay for an adjusted tax bill for 2014 from IRS with underpayment penalty and additional payments?

I received an unexpected letter from IRS in 2016 for adjusted 2014 tax bill due to underpayment. I took out of my other 401k ( early cash out ) to pay for this. Since i received the new tax bill from 2014 with underpayment penalties, can I claim tax levy for this?

1 Reply
dmertz
Level 15

Can I claim a tax levy on a recent 401K early cash in to pay for an adjusted tax bill for 2014 from IRS with underpayment penalty and additional payments?

This is not a tax levy.  A tax levy occurs when the IRS itself takes money from your account.  If you are under age 59½, a tax levy would be reported with the payer including code 2 in box 7 (since the payer would know that it was the IRS that took the money out of the account).

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