I'm needing to get this figured out tonight if at all possible. Client converted an IRA to a Roth in 2008. This amount was say $10000. They then recharacterized the Roth to an IRA in 2009 for the previous conversion in 2008. So no tax on the return.
They called after all was efiled and said the broker gave a lower amount say $5000 as having been recharacterized. So they called and said that I should do an amended return for them. I put it off till after tax season and didn't think much about it. They called today and want to pay now so as not to have a penalty.
Now I'm thinking about it and don't think they have to do anything. Do you agree? Doesn't the recharacterization take care of any losses. (I'm reading the example on TTB pg 13-14.) Please help me verify this,
They called after all was efiled and said the broker gave a lower amount say $5000 as having been recharacterized. So they called and said that I should do an amended return for them. I put it off till after tax season and didn't think much about it. They called today and want to pay now so as not to have a penalty.
Now I'm thinking about it and don't think they have to do anything. Do you agree? Doesn't the recharacterization take care of any losses. (I'm reading the example on TTB pg 13-14.) Please help me verify this,
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