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hdw
Returning Member

I inherited funds from an IRA as a death beneficiary. We did not know it was taxable. Can I get a waiver for the penalty since I did not know I had a taxible benefit?

I did not pay estimated tax becasue I did not know the funds were an IRA until the 1099 arrived in Feb.  Can I get a waiver for the underpayment penalty since we did not know we had tax to pay?

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MichaelMc
New Member

I inherited funds from an IRA as a death beneficiary. We did not know it was taxable. Can I get a waiver for the penalty since I did not know I had a taxible benefit?

No. But there may be some relief in sight. The IRS has announced a one year only waiver of underpayment penalties for many taxpayers who fell short this year, due to the numerous and significant changes in the tax code resulting from the Tax Cuts and Jobs Act of 2017. Please refer to the IRS news release below:

https://www.irs.gov/newsroom/irs-waives-penalty-for-many-whose-tax-withholding-and-estimated-tax-pay...


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MichaelMc
New Member

I inherited funds from an IRA as a death beneficiary. We did not know it was taxable. Can I get a waiver for the penalty since I did not know I had a taxible benefit?

No. But there may be some relief in sight. The IRS has announced a one year only waiver of underpayment penalties for many taxpayers who fell short this year, due to the numerous and significant changes in the tax code resulting from the Tax Cuts and Jobs Act of 2017. Please refer to the IRS news release below:

https://www.irs.gov/newsroom/irs-waives-penalty-for-many-whose-tax-withholding-and-estimated-tax-pay...


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