Do I need to file a 5329 for missed RMD, if so, when and how

[Peter-CT]

In 2020, my automatic RMD payment was turned off, but was not turned back on for tax years 2021 and 2022. I have just noticed this. So, I missed my RMD for the past two tax years (21 and 22).  I have now taken these withdrawals, which will show up on my 2023 return, together with the 2023 RMD. 

I have viewed the IRS guidance as well as several posts here about how to use form 5329 to account for the missed RMDs and am now thoroughly confused. Some responses say to send in a separate printed copy, others say to attach the form to this year's return, still others say to attach the 2021 missed RMD to an amended 2021 tax year return. One thread said it is best to ignore the whole thing and to plead ignorance if the IRS ever questions this. What should I do? 
I am using TT desktop software. This is an inherited IRA.  Any advice gratefully received.

[Anonymous_]

Stay tuned. I will page @dmertz 

[fanfare]

The IRS can waive your penalties if you have a reasonable explanation which you must submit.

While you wait for a detailed answer on the question, you can work on that.

[dmertz · Accepted solution]

It's extremely difficult to get TurboTax to create the necessary Form 5329 with respect to a late-taken distribution from an inherited IRA.  I would probably just prepare and mail the 2021 and 2022 Forms 5329 after filing your 2022 tax return, making sure to sign each of the Forms 5329.  No payment is to be made when requesting a waiver of the excess-accumulation penalty.  The IRS will bill for the penalty if they deny the request, which is rare.

The instructions for completing Part IX of Form 5329 to request the waiver are here:

https://www.irs.gov/instructions/i5329#en_US_2022_publink13330rd0e1693

Forms 5329 are here:

https://www.irs.gov/pub/irs-prior/f5329--2021.pdf

https://www.irs.gov/pub/irs-prior/f5329--2022.pdf

[Mike9241]

you may want to consult a tax pro. a late RMD is subject to a 50% penalty for both years. didn't the IRA trustee send you notices about RMDs for those years?  the IRS looks at all the facts and circumstances in your request to abate penalties. a poorly worded request could result in the IRS denying it

[fanfare]

"The IRS will review the information you provide and decide whether to grant your request for a waiver. "

Not to worry. the IRS will accept any reasonable explanation that includes dates and amounts to show that you acted in a timely fashion.

[fanfare]

The proper way to add missing forms for an already filed tax return is to attach them to Form 1040-X.

When no dollar amounts are changing, leave 1040-X lines 1-23 EMPTY.

@Peter-CT