USA Roth Conversion Issue


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May 3, 2017
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My client did a Roth conversion in 2010 and never gave me the information to report it. This year in 2016 he received an IRS bill for 2015 for an amount he withdrew from the Roth in 2015 but also didn't report. Is there any way to handle this other than to amend 2010 to report the conversion, pay the tax, and then amend 2015 to show the distribution as a non-taxable Roth distribution? Will he get penalties and interest dating back to 2010?

Thanks for any help you can provide on this subject.
 
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Joined
Jul 15, 2017
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Hi,
Because he will owe taxes yes. Amend 2010 and pay taxes, he will have penalties and interest from 2010. If he didn't have any penalties and filed all returns prior to 2010 (going back 3 yrs), he can file a request for penalty abatement. After which you can address the 2015 issue. Hopefully this helped!
 

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