ljc@drux2.UUCP (ClerLJ) (05/30/85)
my wife and i are going to tax court in the near future and need some information. yes, we do have an attorney representing us. here's what's happening: in december of 1984 we received a request from the irs for documents substantiating my wife's ira deduction for the 1981 tax year. we called the irs service center to find out what the problem was and hopefully to resolve it over the telephone. no one knew the specifics of our problem nor would they find out. we finally discovered the problem ourselves: we made the contribution in april 1982 and told the custodian to apply it for 1981 (there was no box to specify the applicable year on the form, there is now), but the custodian mistakenly applied the contribution to 1982. we did not give CAREFUL attention to the report filed by the custodian to the irs, we KNEW that it applied to 1981. to make a long story short, the irs wants us to pay back taxes, penalty, interest, and excise tax as a result of the contribution. the custodian says they could not have made such a mistake. we want the irs to to tell the custodian to change the applicable year to 1981 from the recorded 1982. note: in april 1983 we made a contribution for my wife's ira for the 1982 tax year. has any thing like this ever happened to any of you or anyone you know? if so, what were the details? how was it dealt with? what was the resolution? any other suggestions?
dr_d@sftig.UUCP (D.Donahue) (05/30/85)
> has any thing like this ever happened to any of you or anyone > you know? if so, what were the details? how was it dealt with? > what was the resolution? any other suggestions? Good luck --> Bend over! <-- Doug Donahue
john@hp-pcd.UUCP (john) (06/14/85)
<<< If your custodian applied both your April 82 and 83 payments to 1982 then you should look at the total amount applied for 1982. If it exceeds the legal limit for IRA contributions then you may have a claim against them for not catching it. If the IRS doesn't let you change your contributions then refile for 1982 and this time use the total IRA contribution that was paid in 82 and 83. If you can get a refund for 82 then it may cancel some of the tax and penalty that you will incur for 1981. If there was a large increas in income for 1982 then you may even make money on this deal. John Eaton !hplabs!hp-pcd!john