RMD

[mwise80210]

I mistakenly filed form 5329 (RMD) when I was 72 years old and still working.  I filed it separately after my 2023 tax return with the payment.  After realizing my mistake, I wrote to the IRS to notify them of the error and cancelled payment.  The IRS is now demanding payment or they will lien my property.  How do I correct this?

[BillM223 · Accepted solution]

If the IRS is saying that they will put a lien on your property, it sounds like a lot of time has passed - the IRS does not threaten liens unless they have not gotten satisfactory responses from you earlier.

First, in the previous correspondence, did you send the IRS a nice letter explaining why it was a mistake to send that 5329, along with a corrected 5329 (perhaps all blank)?

What you may need to do is get an Enrolled Agent or CPA to represent you to the IRS, to explain why you don't owe this amount.

An Enrolled Agent - like many of the TurboTax employees here in the Community - are allowed to represent any taxpayer (individual, corporate, partnership or trust) on any tax matter before any office of the IRS. 

You can find a local Enrolled Agent here: "Find a Tax Expert".

If you sign a limited Power of Attorney with the EA (or CPA), then you can hand the IRS communication process over to them.

Just explain the situation to him/her and let them take over the letter-writing.

[mwise80210]

I met with a local IRS agent and sorted it out.  All I had to do was complete an amended 5329 showing 0 due.

Thank you so much!!!