https://ttlc.intuit.com/community/retirement/discussion/i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823663#M75395 Thu, 04 Jul 2019 06:18:06 GMT lsharrin5485 2019-07-04T06:18:06Z https://ttlc.intuit.com/community/retirement/discussion/i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823663#M75395 Thu, 04 Jul 2019 06:18:06 GMT https://ttlc.intuit.com/community/retirement/discussion/i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823663#M75395 lsharrin5485 2019-07-04T06:18:06Z https://ttlc.intuit.com/community/retirement/discussion/re-i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823700#M75397 <P>If you cashed out a retirement account the distribution was reported to the IRS.&nbsp; Money you take from a retirement account is taxable income. Depending on the circumstances, that money may be subject to a 10% early withdrawal penalty and ordinary income tax as well.&nbsp; &nbsp;You should have entered a 1099R on your tax return for that for the tax year in which you received that money.&nbsp; It may have taken this long for the IRS to catch it, but now you need to sort it out with the IRS.</P> Thu, 04 Jul 2019 13:50:58 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823700#M75397 xmasbaby0 2019-07-04T13:50:58Z https://ttlc.intuit.com/community/retirement/discussion/re-i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823701#M75398 <H2><SPAN class="lia-link-navigation lia-link-disabled">"i left this dept in 2015 so why now"</SPAN></H2><P>&nbsp;</P><P><SPAN class="lia-link-navigation lia-link-disabled">I assume you mean you left that job.&nbsp;&nbsp;&nbsp; Did you have a 401(k) with the company?</SPAN></P><P>&nbsp;</P><P><SPAN class="lia-link-navigation lia-link-disabled">Even if you did not cash out the 401(k) when you left, many company plans provide that they will automatically roll the 401(k) into an IRA in your name if you do not cash the plan out in a year or two.&nbsp;&nbsp; If that happened, then they would have sent a 1099-R showing the rollover.&nbsp;&nbsp; That would not be taxable if reported on your tax return, but failing to report it can result in the IRS assuming that you took the money.&nbsp;&nbsp; (Just a guess).<BR /></SPAN></P> Thu, 04 Jul 2019 14:11:15 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823701#M75398 macuser_22 2019-07-04T14:11:15Z https://ttlc.intuit.com/community/retirement/discussion/re-i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823828#M75405 <P>"it has something to do with a taxable retirement income im guessing?"</P><P>&nbsp;</P><P>Don't guess about what the IRS letter is about. Read the entire letter carefully and make sure you understand exactly what it's about and what you have to do. If you have trouble understanding it, bring the letter and your tax return to a local tax professional and ask the tax pro to explain it to you.</P> Thu, 04 Jul 2019 21:47:31 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-received-a-letter-from-irs-regarding-my-2017-return-it-has-something-to-do-with-a-taxable/01/823828#M75405 rjs 2019-07-04T21:47:31Z