Individual Retirement Account Contributions and Distributions Are Not Adequately Monitored to Ensure Tax Compliance

Treasury IG for Tax Administration: Individual Retirement Account Contributions and Distributions Are Not Adequately Monitored to Ensure Tax Compliance, March 28, 2008, Reference Number: 2008-40-087

  • “We analyzed more than 13.7 million IRA Contribution Information (Form 5498) showing IRA contributions in Tax Year (TY) 2005 and identified 51,109 taxpayers who had made IRA contributions in excess of the maximum allowable IRA contribution limit. Contributions that are in excess of the limits and not properly withdrawn are subject to a 6 percent excise tax. The 51,109 taxpayers we identified made excess contributions of more than $110 million and did not report excise taxes on these excess contributions. The loss to the IRS on unpaid excise taxes was more than $6.6 million in TY 2005. If taxpayers continue to make excess contributions at the same rate we identified, we estimate the amount of excise tax that would not be collected over 5 years would be approximately $33 million.”
    • LinkedIn
    Posted in: E-Government, Government Documents
    ➤