I just received a letter from the IRS stating that in 2021 I received a $12,000 distribution from our traditional IRAs and did not report it on my taxes. They want me to pay them a $8,500 penalty.
Of course, this $12,000 was the amount that I converted from our traditional IRAs into our Roth IRAs ($6k for myself and $6k for my wife). We have done this every year going on nine years with no issues. We always carry a traditional IRA balance of $0. Backdoor Roth baby!
Could anyone help me identify which documents I need to send the IRS to show them that this was not a distribution but actually a “conversion” which is a legal under the tax code??
Thank you so much. Ugh!
Of course, this $12,000 was the amount that I converted from our traditional IRAs into our Roth IRAs ($6k for myself and $6k for my wife). We have done this every year going on nine years with no issues. We always carry a traditional IRA balance of $0. Backdoor Roth baby!
Could anyone help me identify which documents I need to send the IRS to show them that this was not a distribution but actually a “conversion” which is a legal under the tax code??
Thank you so much. Ugh!
Statistics: Posted by jeff622859 — Sat Apr 27, 2024 2:39 pm — Replies 6 — Views 778