How to pay excise tax for 1999 early distribution, if 1999 income tax

[k man]

A client took an early distribution from his IRA but failed to pay the excise tax. He already filed his return for 1999 . he would like to pay the tax. what is the procedure for this? should he file an amended return and just pay the 10% . how does he calculate the late interest and penalties, if any?

[Edited by k man on 07-10-2000 at 08:49 AM]

[Michael Devault]

The amended return should include form 5329, which is used to calculate additional taxes attributable to distributions from IRAs, etc.

The IRS will calculate penalties and interest for you. Nice of them, isn't it? One benefit of our tax dollars hard at work.

Hope this helps.

[Mary Kay Foss]

Instructions to Form 5329 indicate that it could be filed without an Amended Return. The taxpayer and preparer must sign the Form 5329 (not required when attached to a return) and they don't really explain how they want the check sent. Saving some additional paper would be good for the trees.