With millions of dollars in tax penalties that go uncollected each year, it seems almost certain that the IRS will put more time into assessing compliance to the many rules surrounding IRAs. For instance, roughly $290 million of penalties were uncollected in years 2006 and 2007 due to missed withdrawals and ineligible contributions. The instances of non-compliance are often caused from bureaucratic hurdles to tax forms which simply do not provide enough direction according to a report by the Treasure Inspector General for the Tax Administration.
Fortunately for us, Kelly Greene was kind enough to post an article titled “IRA Rules Get Trickier” which highlights this upcoming issue and helps explain the most common mistakes that we all much take extra effort to ensure we are fully compliant. The most common mistakes individuals make regarding IRAs revolve around failing to withdraw, contributing too much, and inheriting an account. If you feel that you may be at risk of these, then please read the full article linked here. Taking the time now can help save thousands of dollars in penalties going forward.