The IRA Mistake The IRS Lets Taxpayers Get Away With

Forbes

Is the Internal Revenue Service doing enough to catch taxpayers who fail to take required minimum distributions from their IRAs? Not according to a new report by the Treasury Inspector General for Tax Administration, which calls on the IRS to “proactively” reach out to taxpayers on this issue. “People are making mistakes, but they aren’t getting caught,” says Barry Picker, a CPA in Brooklyn, N.Y., adding, “The IRS wants people to comply, but they don’t want to penalize them.”