Tax year 2010 offered a special one-time election to postpone the tax on Traditional IRA’s convertions to Roth IRA’s in that year. Here we are now, learning from the IRS notices being received by dentists who took advantage of this tax postponement, that the IRS did not have their systems properly programmed to recognize this postponement option.
It seems every dentist who elected the postponement is receiving an IRS notice whereby the IRS is proposing that the Traditional IRA withdrawal is taxable in 2010 – when in fact that is not the case.
If you have received this notice, feel free to contact us.
Darryl Bodnar, CPA