RMD Mistake By Insurance Company

[Laurelbeach]

My insurance company sent me a 1099-R for my RMD for 2025.  They never sent the RMD money to the IRS to pay my taxes. The insurance company has acknowledged their mistake in writing that this was their fault because of system errors.  The IRS penalty is $2200.00.  How do I get a waiver from the IRS for this penalty?  I filled out a Form 5329, but the 1040 line 38 still shows the penalty.  How do I not pay this penalty until the IRS reviews my waiver request?

[fanfare]

IF the custodian was to send withholding to IRS, but failed to do so, do not use Form 5329.

It you have a penalty on 1040 Line 38, you can ask the IRS to abate that due to

• custodian error.
• first time

See IRS website for more info.

@Laurelbeach 

P.S. You were supposed to notice that immediately and send in the money yourself.