you will not be able to e-file because you'll need to attach their letter taking the blame for the missed RMD. if you were to forgo attaching the letter so you could e-file expect a notice from the IRS for penalties for failure to take the RMD. it is much easier to address this issue ASAP then waiting for an IRS notice which may not show up for a year or more.
get a copy of the letter signed by an official. keep a copy. sometimes the IRS loses things.
you will need to include form 5329. follow these instructions. include a letter that you sign and date explaining what happened and that it was the fault of the financial institution - refer to their letter attached. also indicate that the RMD was in fact taken in 2/2022.
5329 instructions
Waiver of tax for reasonable cause.
The IRS can waive part or all of this tax if
you can show that any shortfall in the
amount of distributions was due to
reasonable error and you are taking
reasonable steps to remedy the shortfall. If
you believe you qualify for this relief,
attach a statement of explanation and file
Form 5329 as follows.
1. Complete lines 52 and 53 as
instructed.
2. Enter “RC” and the amount of the
shortfall you want waived in parentheses
on the dotted line next to line 54. Subtract
this amount from the total shortfall you
figured without regard to the waiver, and
enter the result on line 54.
3. Complete line 55 as instructed. You
must pay any tax due that is reported on
line 55.
The IRS will review the information you
provide and decide whether to grant your
request for a waiver. If your request is not
granted, the IRS will notify you regarding
any additional tax you may owe on the
shortfall.
also, realize that you must still take an RMD for 2022. this will have n effect on your taxes which you might want to seek to recover from the FI since they accept fault.
