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Level 2
posted Jan 20, 2022 6:17:05 PM

1099-R Amending Taxes & Interest

I recently got my 1099-R forms (2021). I have to do an amendment for Tax Year 2020 and file that again since I owe some money due to the newly received 2021 1099-R forms. All of my IRA distributions were done in 2020 (removing excess contribution, etc)

 

Do I owe interest for the remainder payment since it's 'late' for 2020? If so, does Turbotax take this additional interest into account when it calculates the remainder owed?


I don't see how it makes sense that I'd owe 'late' interest for Tax Year 2020 since I don't get the form until the following year.

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1 Replies
Level 15
Jan 20, 2022 7:12:53 PM

TurboTax says:

 

"[IRS}  can still assess a penalty or charge interest for not paying the proper amount when the taxes were originally due."

 

IRS can waive a penalty but not interest.

Penalties:
Subtract any penalty from the amount you owe reported on original 1040.
Don't try to include, but ignore, any new or changed penalty.
IRS will calculate your new penalty on their own and will bill you.