4 Year spread question

[Guest jimbro]

Hi, I hope someone can help me. I was going through my tax records and realized the person who had prepared my taxes for the year 2000, did not include my Roth deduction (the 4th of the 4 year spread deductions). Do I simply deduct the amount this year, or will there be fines I will have to pay as well? Thanks for any help, Jim

[Appleby]

The remedy would be to file an amended return for 2000 and include the income for that year. However, according to the IRS “You generally must file Form 1040X to claim a refund within three years from the date you filed your original return, or within two years from the date you paid the tax, whichever is later”.

Talk to a tax professional to be sure. I don’t conceive that the IRS would refuse to accept a request to increase your taxable income. You may owe interest on the taxes owed on the amount.

[John G]

Applby - Roth deduction? Perhaps this fellow was talking about the 1/4 of taxable amount of a Roth conversion?

[Guest jimbro]

Thanks for your reply. Yes, to the other person who replied, it concerns the 1/4 taxable amount that possibly wasnt included on my income for that year. thanks for the help, I'll get to filling out the 1040X.

The remedy would be to file an amended return for 2000 and include the income for that year. However, according to the IRS “You generally must file Form 1040X to claim a refund within three years from the date you filed your original return, or within two years from the date you paid the tax, whichever is later”.

Talk to a tax professional to be sure. I don’t conceive that the IRS would refuse to accept a request to increase your taxable income. You may owe interest on the taxes owed on the amount.

[Appleby]

Applby - Roth deduction? Perhaps this fellow was talking about the 1/4 of taxable amount of a Roth conversion?

Hi John----That’s what I though. I based my response on that assumption (that by Roth Deduction jimbro meant the 4-year spread for the conversion).

[John G]

Another problem on the way to getting solved!

The 4 year income averaging option was available only for 1998 IRA to Roth conversions.