I made a mistake on my 2005 return by not reporting an IRA withdrawal as income. What should I do?

Question

Is there a chance the IRS won't catch this?

Answer 1

There is little or no chance that the IRS won't catch this. They already know about the distribution; they just haven't gotten around to contacting you yet.

You need to file an amended return for 2005 using Form 1040X and pay any tax due. There will likely be penalties and interest due for late payment. (You do NOT send in a complete tax return as one other poster suggested, just the Form 1040X with the changed information and any required forms or schedules that have changed.)

If you wait for the IRS to catch up with you, the penalties and interest will be even higher. Therefore it's in your best interest to amend the return and pay the taxes due as quickly as possible.

Answer 2

File an amended return asap, and pay any additional tax due.

Chances that they won't catch it are slim to nil, since the withdrawal would have been reported to them and they run computer matches of items reported such as W-2's and 1099's against returns filed.

Answer 3

amend your 2005 tax return using form 1040X

re-do your return for 2005,, you can get forms at irs.gov,, send in a copy of new return with 1040X
on pg 2 of 1040X at bottom of page is a place to write an explanation of why your are amending the return

since you will owe tax,, send the additional amount and IRS will contact you with how much interest you owe

Answer 4

contact them sap they can charge interest on any outstaning amounts...

Answer 5

wait until they contact you.