topic Re: CP05A in Retirement tax questions

CP05A

meeler3 — Wed, 21 May 2025 00:16:12 GMT

In the IRS notice I received CP05A, it asked for a statement of benefits on retirement income. What do they mean by that? I am not retired and I do not have retirement income coming for several years? Do I ignore that part of the requested documents, or are they looking for something else, like disability income, etc?

Thanks

Re: CP05A

dmertz — Wed, 21 May 2025 00:23:58 GMT

Did you do any rollovers from a retirement account, particularly from one employer plan to another employer plan? The IRS might question that such a rollover was actually completed since a receiving employer plan does not report receipt of the rollover the way an IRA custodian would report receipt of a rollover to an IRA.

Re: CP05A

meeler3 — Wed, 21 May 2025 00:37:16 GMT

Thanks for addressing my question. No, no rollovers (IRA or 401k). They also asked for 3 pay stubs including the end of year pay stub, as well as a letter on company letterhead stating dates of employment, wages paid and withholdings. I had a couple of months of disability that was paid to me by the state (NJ), but my employer didn't capture income and taxes on my original W2, but they corrected it when I caught it. I did my taxes only once, and it was with the corrected W2, I am guessing that they (IRS) received my return, it didn't match what my company had submitted, because they would have had to submit an amended one to the IRS. Could that be correct, and why the IRS is holding my 3.7k refund?

Re: CP05A

fanfare — Wed, 21 May 2025 09:47:33 GMT

mail copies of the documents that support the withholding amount you reported on your tax return.

( or greater amount if you made a mistake originally).

You can't supply documents that don't exist.

@meeler3

Re: CP05A

dmertz — Wed, 21 May 2025 12:00:02 GMT

I expect that the disability payments would have been reported on a Form 1099-R, which would explain why the IRS would be looking for something regarding retirement income.

Re: CP05A

meeler3 — Wed, 21 May 2025 19:45:34 GMT

@fanfare - thanks. That would mean to include the corrected W2 from my employer. Of course, the IRS says don't send your W2 as one of the documents, but in this case it is definitely relevant.

Re: CP05A

meeler3 — Wed, 21 May 2025 19:52:27 GMT

@dmertz - Thank you. In New Jersey, the employer is required to report it (disability income and tax) (not the employee who received it). Weird, but true. I believe my employer waited to send the corrected (amended) information to the IRS even though they sent me a corrected W2, and that is probably why it flagged the IRS.

I am sure my employer waited until April 15th as a 'just in case' buffer, in case they had to make other corrected w2s for others- at least that is my educated guess.