Dreaded IRS CP2000 - Backdoor Roth

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Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Wed Dec 18, 2019 5:09 pm

So I got the dreaded CP2000 letter. Any advice would be appreciated.

Background info:
* I filed jointly in 2017
* My wife is a stay at home mom
* I have a W2 job
* Both of our Trad IRA balances were $0 prior to doing the backdoor Roth.
* We both contributed $5,500 to Trad IRAs.
* Since we were in the trad IRA deductibily phase-out region, tax software (both TurboTax and FreeTaxUSA) said my wife qualified for a $2,490 Trad IRA deduction. I did not qualify for a deduction.
* We both converted 100% of these contributions to Roth IRAs. Therefore, on the $11k conversion, only $2,490 was taxable per the above bullet.
* I'm 99.99% sure I filled out both 8606 forms correctly.

CP2000 claim:
* We took too high a deduction for my wife's $5,500 Trad IRA contribution. We claimed a $2,490 deduction for my wife's TIRA contribution. The IRS says we should have only claimed a $1,120 deduction (a difference of $1,370).
* The CP2000 shows the downstream implications of the above as a $1,370 increase taxable income in line 43 with associated downstream increases in tax liability (lots of downstream lines are effected....Tax Line 44, AMT Line 45, CTC Line 52, Total Tax Line 63).

My gripe:
* While the IRS is eager to show that a $1,370 reduction in IRA deductions translates to a $1,370 increase in taxable income and associated increase in taxes, they fail to acknowledge that this also effects the 8606 and therefore Line 15a (the size of the taxable IRA distribution) by $1,370. When I flow both changes (reduced IRA deduction on Line 32 + reduced taxable IRA conversion on Line 15b) through the 1040 , there is zero net effect on taxable income on Line 43 (and therefore there is no change in taxes owed). It's intuitive. Since we converted the entirety of my wife's Trad IRA, we negated the entirety of any tax benefits from the Trad IRA since the taxable conversion amount exactly equaled the size of the IRA deduction. Therefore, the magnitude of the original Trad IRA deduction is irrelevant to my tax liability.

Primary Question:
* Does my above claim seem reasonable to you? Am I justified in thinking that this doesn't change my tax liability? If I'm in the wrong, I'm happy to cut them a check.

Secondary Questions (assuming I'm right)
* What is the easiest way to resolve this? I just spent an hour on hold with the IRS only to talk to an unhelpful agent for five minutes who was unable to provide much guidance. She advised sending in an updated 8606.
* If I send an updated 8606 for my wife only, that's easy. However, I worry the IRS won't be smart enough to realize that this has zero implications to my tax since it will effect Row 15b (taxable IRA distribution) and therefore Row 22 (total income) as well. Given my distrust that they'll understand the 1040 implications, do I fill out a revised 1040 with the associated changes to Row 15b? It seems like the CP2000 explicitly discouraged that.
* If I revise the 8606 & 1040, is there any harm in deviating from the IRS' proposed $1,120 deduction on my wife's Trad IRA. What if I took the deduction all the way to zero on the 8606 and the 1040? Would immunize me against the IRS changing its mind again on the size of the deduction that I'm entitled to?
* If I were to use tax software to change both the 1040 and 8606 on my 2017 return, I have no idea how I'd implement the proposed change. I can't override what the software computes as the Trad IRA deduction. Therefore, I'm leaning against this approach and towards a paper form.
* Are there important mechanics to the sending of the letter (like certified mail)?

Random rant:
* I'm remain unsure how I screwed up the original filing. I used both TurboTax and FreeTaxUSA to get equivalent numbers (it was my first time using FreeTaxUSA), then filed with FreeTaxUSA because it was free.

Thanks for your help,
FP
I blog. Taxes are the lowest hanging source of alpha. I eat tax alpha for breakfast.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by retiredjg » Wed Dec 18, 2019 5:27 pm

I do not think the letter is about the Backdoor Roth. I think the letter is that somehow your deduction was wrong. It appears to them you deducted too much, therefore paying too little tax. So you got the letter.

That's what you need to fix (the deduction) and to do that you need to amend your 1040 for that year and you need to send in a new Form 8606 to go with it.

Just because you can take a deduction does not mean you have to. let the tax software calculate what it wants but do not actually take any deduction. You may have to force a $0 in there or something.

This will change line 1 (and other lines) of the form 8606.

I agree that your taxable income should be the same.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by retiredjg » Wed Dec 18, 2019 5:30 pm

I believe that an amendment is done on a 1040x, not on the original form you used. So you'll have to document what lines change. In this case, you would change your deduction to $0 and then find the line where your 8606 income enters the 1040 and change that line too. In addition to doing a new 8606.

This is my best guess. Someone else may be more helpful with that.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by HomeStretch » Wed Dec 18, 2019 5:36 pm

+1 to retiredjg’s response

Consider including a cover letter that summarizes your response that you owe no additional tax as the reduced tIRA deduction is offset by reduced taxable conversion to Roth IRA. The cover letter can also include a table - rows would be the 1040 lines affected, AGI and TI and the columns would be: column 1 - $ per original filing, column 2 - $ per 1040X, column 3 - difference between column 1 and 2. Include with the letter your 1040X and revised Form 8606. I personally send all IRS filings and correspondence via USPS certified mail, return receipt requested as proof of filing/response.
Good luck.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by Alan S. » Wed Dec 18, 2019 5:56 pm

Yes, it appears the IRS failed to consider that a lower deduction means a lower taxable conversion in this situation. Perhaps opting for NO deduction and NO taxable income for the conversion (if there were no earnings generated) would be simpler to get through to them.

Also, please confirm that the year the contribution was assigned to is the same year in which the conversion was done. If not, the deduction will reduce taxable income for the prior year and the conversion will increase taxable income for the current year. Finally, note that if you qualify for the deduction you do not have to take the deduction, you can opt for a non deductible contribution.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Wed Dec 18, 2019 6:57 pm

retiredjg wrote:
Wed Dec 18, 2019 5:27 pm
I do not think the letter is about the Backdoor Roth. I think the letter is that somehow your deduction was wrong. It appears to them you deducted too much, therefore paying too little tax. So you got the letter.

That's what you need to fix (the deduction) and to do that you need to amend your 1040 for that year and you need to send in a new Form 8606 to go with it.

Just because you can take a deduction does not mean you have to. let the tax software calculate what it wants but do not actually take any deduction. You may have to force a $0 in there or something.

This will change line 1 (and other lines) of the form 8606.

I agree that your taxable income should be the same.
Thanks for the response. I agree this isn't a problem with the backdoor roth. It's a problem with the deductability of the TIRA, which has follow-on consequences for form 8606. I should have been more clear in the title of the post.

Thanks for your suggestions.
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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Wed Dec 18, 2019 7:00 pm

retiredjg wrote:
Wed Dec 18, 2019 5:30 pm
I believe that an amendment is done on a 1040x, not on the original form you used. So you'll have to document what lines change. In this case, you would change your deduction to $0 and then find the line where your 8606 income enters the 1040 and change that line too. In addition to doing a new 8606.

This is my best guess. Someone else may be more helpful with that.
Thanks for the suggestion!

I think the path of least resistance is to file a 1040x while claiming $0 trad IRA deduction and illustrate that it doesn't effect my taxes one way or the other.
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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Wed Dec 18, 2019 7:01 pm

HomeStretch wrote:
Wed Dec 18, 2019 5:36 pm
+1 to retiredjg’s response

Consider including a cover letter that summarizes your response that you owe no additional tax as the reduced tIRA deduction is offset by reduced taxable conversion to Roth IRA. The cover letter can also include a table - rows would be the 1040 lines affected, AGI and TI and the columns would be: column 1 - $ per original filing, column 2 - $ per 1040X, column 3 - difference between column 1 and 2. Include with the letter your 1040X and revised Form 8606. I personally send all IRS filings and correspondence via USPS certified mail, return receipt requested as proof of filing/response.
Good luck.
Thanks for your detailed recommendation!

I'll proceed exactly as you state, with a formal 1040X sent via USPS certified mail.

- FP
I blog. Taxes are the lowest hanging source of alpha. I eat tax alpha for breakfast.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by MarkNYC » Wed Dec 18, 2019 8:43 pm

I would agree that an amended return probably makes sense. The CP2000 contains a Response form. If filing an amended return, you should write "CP2000" across the top of the amended Form 1040X and attach the 1040X to the back of the completed Response form, then mail back to the address listed on the tax notice.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by whodidntante » Wed Dec 18, 2019 9:09 pm

FrugalProfessor wrote:
Wed Dec 18, 2019 5:09 pm
* What is the easiest way to resolve this? I just spent an hour on hold with the IRS only to talk to an unhelpful agent for five minutes who was unable to provide much guidance. She advised sending in an updated 8606.

* I'm remain unsure how I screwed up the original filing. I used both TurboTax and FreeTaxUSA to get equivalent numbers (it was my first time using FreeTaxUSA), then filed with FreeTaxUSA because it was free.
I had a similar but not identical situation with the IRS. I gathered my documentation and enjoyed writing a carefully crafted, slightly confusing, and accurate disagreement with their proposed changes. I included only information sufficient to support my argument. Nothing extra. The goal is not exactly to inform or to persuade, but to seem like you're probably right and are not worth the trouble of further action.

I sent the response by regular mail. It was the first time I'd used a stamp in months. I figured they would tell me eventually if they didn't get it.

Don't assume the IRS is correct. They might not be correct. There were not in my case. But it's OK. We all make mistakes sometimes. If you are unable to conclude they are correct, disagree.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by Katietsu » Wed Dec 18, 2019 9:20 pm

Please make sure there is not a different problem. I am concerned that you do not understand why the amount of the IRA deduction was reduced. This implies to me that you also had additional income that you have not accounted for. When multiple items are changed, sometimes the core problem is obscured on the CP 2000. I know the IRS makes mistakes but having the correct income and getting the taxable portion of the IRA wrong is an unlikely one. Unlikely not impossible.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by MarkNYC » Wed Dec 18, 2019 10:07 pm

FrugalProfessor wrote:
Wed Dec 18, 2019 5:09 pm

* We took too high a deduction for my wife's $5,500 Trad IRA contribution. We claimed a $2,490 deduction for my wife's TIRA contribution. The IRS says we should have only claimed a $1,120 deduction (a difference of $1,370)...

Random rant:
* I'm remain unsure how I screwed up the original filing. I used both TurboTax and FreeTaxUSA to get equivalent numbers (it was my first time using FreeTaxUSA), then filed with FreeTaxUSA because it was free.
Without seeing the tax return, I have a strong hunch as to what happened.

The $5,500 deduction is phased-out within a $10,000 range of Modified AGI, so within that range, every $1,000 income increase causes a $550 (or 55%) decrease in the deduction allowed. For IRA deduction purposes, MAGI includes various possible adjustments, one of which is no allowance for an IRA deduction.

So it seems that your tax program included the $2,490 IRA deduction in MAGI, which the IRS disallowed, causing an additional decrease in allowable IRA deduction of 55% x $2,490 = $1,370.

If this is what happened, I'm a bit surprised Turbotax would make this error.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Thu Dec 19, 2019 6:14 pm

whodidntante wrote:
Wed Dec 18, 2019 9:09 pm
FrugalProfessor wrote:
Wed Dec 18, 2019 5:09 pm
* What is the easiest way to resolve this? I just spent an hour on hold with the IRS only to talk to an unhelpful agent for five minutes who was unable to provide much guidance. She advised sending in an updated 8606.

* I'm remain unsure how I screwed up the original filing. I used both TurboTax and FreeTaxUSA to get equivalent numbers (it was my first time using FreeTaxUSA), then filed with FreeTaxUSA because it was free.
I had a similar but not identical situation with the IRS. I gathered my documentation and enjoyed writing a carefully crafted, slightly confusing, and accurate disagreement with their proposed changes. I included only information sufficient to support my argument. Nothing extra. The goal is not exactly to inform or to persuade, but to seem like you're probably right and are not worth the trouble of further action.

I sent the response by regular mail. It was the first time I'd used a stamp in months. I figured they would tell me eventually if they didn't get it.

Don't assume the IRS is correct. They might not be correct. There were not in my case. But it's OK. We all make mistakes sometimes. If you are unable to conclude they are correct, disagree.
Thanks for the advice. I just drafted a response with the updated 8606 and made the case that the reduced IRA deduction is perfectly offset by the reduced taxable portion of the conversion (Line 15b on 1040), leading to no difference in tax. I sent it off via fax. We'll see how it goes...

As MarkNYC points out, the likely culprit is the tax software, which is weird.

Ironically, the backdoor Roth saved the day here, immunizing me from the IRS' dispute of the size of the trad IRA deduction. Perhaps the first time in history where the CP2000 is resolved because of a backdoor Roth, and not the other way around.
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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Thu Dec 19, 2019 6:15 pm

Katietsu wrote:
Wed Dec 18, 2019 9:20 pm
Please make sure there is not a different problem. I am concerned that you do not understand why the amount of the IRA deduction was reduced. This implies to me that you also had additional income that you have not accounted for. When multiple items are changed, sometimes the core problem is obscured on the CP 2000. I know the IRS makes mistakes but having the correct income and getting the taxable portion of the IRA wrong is an unlikely one. Unlikely not impossible.
Thanks for the input. If you see the below comment from MarkNYC, I think the likely culprit is the tax software.

Hopefully the CP2000 is able to be quickly resolved through my argument that the Roth conversion completely negates all tax deductions from the Trad IRA in the first place.
I blog. Taxes are the lowest hanging source of alpha. I eat tax alpha for breakfast.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Thu Dec 19, 2019 6:19 pm

MarkNYC wrote:
Wed Dec 18, 2019 10:07 pm
FrugalProfessor wrote:
Wed Dec 18, 2019 5:09 pm

* We took too high a deduction for my wife's $5,500 Trad IRA contribution. We claimed a $2,490 deduction for my wife's TIRA contribution. The IRS says we should have only claimed a $1,120 deduction (a difference of $1,370)...

Random rant:
* I'm remain unsure how I screwed up the original filing. I used both TurboTax and FreeTaxUSA to get equivalent numbers (it was my first time using FreeTaxUSA), then filed with FreeTaxUSA because it was free.
Without seeing the tax return, I have a strong hunch as to what happened.

The $5,500 deduction is phased-out within a $10,000 range of Modified AGI, so within that range, every $1,000 income increase causes a $550 (or 55%) decrease in the deduction allowed. For IRA deduction purposes, MAGI includes various possible adjustments, one of which is no allowance for an IRA deduction.

So it seems that your tax program included the $2,490 IRA deduction in MAGI, which the IRS disallowed, causing an additional decrease in allowable IRA deduction of 55% x $2,490 = $1,370.

If this is what happened, I'm a bit surprised Turbotax would make this error.
I think you nailed it. I was certainly in the phaseout range, and it looks like the software I used goofed. I'm unsure how I would have screwed that up on my end. All income sources were clearly reported. There was no disputation from the IRS of unreported income. Just that trad IRA deduction amount.

Going forward I'll be more mindful to triple-check that, though our income is fortunately past the phase out region now so that should be a non-issue going forward.

It's incredible how complex the US tax code is and how onerous it is to deal with an issue as simple as a CP2000. I'm crossing my fingers that my response will suffice.
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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by retiredjg » Thu Dec 19, 2019 6:57 pm

I recall hearing something about this...if you have a deductible portion, it changes your MAGI because you have to add your the deductible portion back into the MAGI. Sort of an almost endless circle of trials until you come up with a good number.

I would have mentioned this before, but I thought that a tax software program would notice this and not let you do it wrong.

Anyway, something for you to research. Or am I just nuts in thinking this? :shock:



Either way, I'm not sure if your answer will satisfy the IRS because I don't think you have answered the question they asked. As I understand this, you skipped the question they asked and went to the bottom line...which I think is correct...but did not answer their actual question.

Maybe you can update us when you get an answer.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by FrugalProfessor » Fri Feb 14, 2020 9:14 pm

To close the loop on this thread:
* In December of 2019 I got a CP2000 for tax year 2017 claiming I owed $495 in taxes + $47 in interest.
* On December 18 2019 I faxed them a response. I used one of those sketchy looking scan + fax services online for a buck.
* A month later (mid Jan 2020) the IRS mailed me a letter saying they'd take another 30 days reviewing my case.
* On February 14 2020 the IRS said I owe $0. Happy valentines day to me!

Lessons learned:
* Don't use software with a bug (freetaxusa unless I'm the idiot, which is probably more likely scenario).
* It helps to understand the tax code. It was immediately obvious to me that the IRS' claim of taxes owed was bogus given the conversion on the entire amount.
* Faxing the CP2000 was pretty easy to pull off. I'd recommend it over mailing since it presumably saves a few days of transit time.
* Correspondence with the IRS is annoying. It was stressful and took several hours to resolve.

December 18, 2019

To whom it may concern,

I recently received letter CP2000 in which I was notified that I owe $495 in taxes and $47 in interest for a total of $542. The CP2000 assertion is that we claimed too much for my wife’s Traditional IRA contribution. We claimed a $2,490 deduction while the CP2000 says I could only claim $1,120. The claim is that the $1,370 reduction in the Traditional IRA deduction size leads to $495 more in taxes.

I disagree with the assertion that I owe more taxes, though I accept the reduction in the Traditional IRA deduction to $1,120 for my wife. Please see explanation below.

<Excel table provided showing tax liability is independent of size of Trad IRA deduction>.

Attached is the revised 8606 for my wife reflecting the reduction in the Trad IRA deduction from $2,490 to $1,120. As shown in Row 18 of Form 8606, the taxable amount of the Roth conversion is now $1,120. When I incorporate this into Line 15b of the 1040, this serves to decrease my taxable income to $XXX as shown in Row 22 of the following table (see column entitled “With $1,120 deduction”).

As shown in the above table, the CP2000 reduces the IRA deduction from $2,490 to $1,120. However, the CP2000 as it is currently written does not appropriately reduce the taxable portion of the Trad IRA distribution per the revised 8606 in row 15b of the 1040. Once the appropriate change is made (in the column entitled “with $1,120 deduction”), you can see that the taxable income in Row 43 is unchanged, and therefore the tax liability is unchanged in Row 44. Since my wife is converting the entire Trad IRA balance, you can see that even with a $0 deduction, the taxes owed are unchanged. The right-most column is a scenario in which we take $0 deduction for my wife’s Trad IRA, yet the underlying tax liability is unchanged since it also changes Line 15b in the 1040. Thus, our tax liability is independent of the Trad IRA deduction size given that the entire balance was converted to a Roth IRA.

Once I make the appropriate corrections, my AGI remains at $XXX. Therefore, I cannot file a 1040X which requires a change in AGI since I have no change in AGI to report. Please find my wife’s 1099R for reference.

Thanks,
FP
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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by grabiner » Fri Feb 14, 2020 9:20 pm

FrugalProfessor wrote:
Fri Feb 14, 2020 9:14 pm
Lessons learned:
* Don't use software with a bug (freetaxusa unless I'm the idiot, which is probably more likely scenario).
This is hard to avoid, particularly for state taxes because there are 44 different versions. You need to check the computer calculations on your own in order to find either your errors or software bugs. And I have found and reported several bugs in TaxAct.
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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by retiredjg » Sat Feb 15, 2020 9:19 am

FrugalProfessor wrote:
Fri Feb 14, 2020 9:14 pm
To close the loop on this thread:
Thanks for the update. Glad it worked out for you.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by whodidntante » Sat Feb 15, 2020 9:24 am

FrugalProfessor wrote:
Fri Feb 14, 2020 9:14 pm

* Don't use software with a bug (freetaxusa unless I'm the idiot, which is probably more likely scenario).
The information on the forms does not include the basis, which must be entered manually in even the best tax software. The tax software won't ask you while important forms in my experience so you have to go find where to enter it. But I guess a backdoor Roth is a weird move.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by dodecahedron » Sat Feb 15, 2020 9:56 am

grabiner wrote:
Fri Feb 14, 2020 9:20 pm
FrugalProfessor wrote:
Fri Feb 14, 2020 9:14 pm
Lessons learned:
* Don't use software with a bug (freetaxusa unless I'm the idiot, which is probably more likely scenario).
This is hard to avoid, particularly for state taxes because there are 44 different versions. You need to check the computer calculations on your own in order to find either your errors or software bugs. And I have found and reported several bugs in TaxAct.
*All* tax software has bugs and that includes professional tax software that CPAs and Enrolled Agents spend thousands of dollars annually to purchase licences to use. (I am on several email lists frequented by experienced tax professionals and there is consensus that there are issues with all of them, particularly with state income tax provisions.) Software *can* be helpful but nothing is perfect and there is no substitute for understanding the tax laws.

Streamlining the tax complexity of one´s transactions can often be extremely helpful.

(E.g., in cases like the OP´s, don´t deduct the IRA in the first place if you are just going to convert the whole thing in the same tax year. Another example, relevant to me: instead of making a bunch of different relatively small charitable donations, I just make one big contribution to my Donor Advised Fund and then have the DAF send out the smaller contributions to my charities of choice. That way all I have to enter in my tax software is one big donation and, if audited, all I have to send in is one letter of acknowledgement, not a whole bunch. Another example relevant to me: this past year I donated enough appreciated shares of VTIAX to hopefully get my ¨Foreign Taxes Paid¨ in my taxable account below $300--I held my breath yesterday when Schwab told me my 1099-DIV was available. I opened it up and was pleased to see $272 in the Foreign Taxes Paid box. Yay! This allows me to claim Foreign Tax Credit without dealing with Form 1116. Technically, it might have been more tax-efficient to donate shares of some other funds that had more appreciation in them, though perhaps not since unloading a bunch of VTIAX in taxable also reduced my ongoing nonqualified dividend income, both now and in the future, but mostly I just did not want to spend time messing with 1116 this year or corresponding with the IRS about it later. Note for anyone concerned about letting the tax tail wag the asset allocation dog that I did rebalance after donating international in taxable by moving more of my Roth IRA into international equities.)

Simplifying my tax complexity (and my overall financial complexity) whenever it can be done at zero or minimal cost is a guiding principle for me, particularly as I approach the stage of life where I am aware that someone else may well have to take over my financial life before I am gone. My nightmare is my kids having to deal with a complicated tax audit at a point when I am no longer able to explain to them what was going on in the return. Making charitable donations through my Schwab DAF will make it simple for my kids to access the paperwork they need if I get audited on my charitable donations, which seems likely at some point, given their size relative to my income.

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by manatee2005 » Sat Feb 15, 2020 11:24 am

FrugalProfessor wrote:
Thu Dec 19, 2019 6:15 pm
Katietsu wrote:
Wed Dec 18, 2019 9:20 pm
Please make sure there is not a different problem. I am concerned that you do not understand why the amount of the IRA deduction was reduced. This implies to me that you also had additional income that you have not accounted for. When multiple items are changed, sometimes the core problem is obscured on the CP 2000. I know the IRS makes mistakes but having the correct income and getting the taxable portion of the IRA wrong is an unlikely one. Unlikely not impossible.
Thanks for the input. If you see the below comment from MarkNYC, I think the likely culprit is the tax software.

Hopefully the CP2000 is able to be quickly resolved through my argument that the Roth conversion completely negates all tax deductions from the Trad IRA in the first place.
How much did you pay for tax software you used?

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Re: Dreaded IRS CP2000 - Backdoor Roth

Post by sycamore » Sat Feb 15, 2020 1:00 pm

dodecahedron wrote:
Sat Feb 15, 2020 9:56 am
...
Streamlining the tax complexity of one´s transactions can often be extremely helpful.
...
Thanks for posting what you've done to streamline. I've done a couple of those, too, but I'm always on the lookout for new ways to simplify.
dodecahedron wrote:
Sat Feb 15, 2020 9:56 am
Note for anyone concerned about letting the tax tail wag the asset allocation dog that I did rebalance after donating international in taxable by moving more of my Roth IRA into international equities.)
The Internet Asset Allocation Police thank you for adhering to good AA practices and proactively heading off any concerns :)

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