Got confusing IRS response letter about my Form 5329 for missed RMD - help!

This is actually pretty normal for the IRS. Their initial response letters often just acknowledge receipt without providing a decision. When you file Form 5329 to report a missed RMD and pay the associated penalty (which is typically 50% of the amount not withdrawn), the IRS usually processes this in stages. First, they send an acknowledgment letter (what you received). Then they review your submission, which can take 8-12 weeks. If they accept your explanation and payment, you may receive a second letter confirming this, or sometimes no further communication if everything is in order. If they have questions or disagree with your calculation, they'll send a follow-up letter with specific details. Since you included payment and an explanation letter, you've done everything correctly so far.

After struggling with a similar RMD penalty situation last year, I discovered this tool called taxr.ai (https://taxr.ai) that really helped me make sense of the confusing IRS notices. I uploaded my vague IRS letter and Form 5329, and it explained everything in plain English and gave me the exact next steps. Saved me hours of stress trying to decode what the IRS was actually saying!

Okay I have to admit I was really skeptical about taxr.ai but I finally tried it with my own confusing IRS letter about Form 5329 for my missed RMD. It actually told me that my letter was just a standard processing notification and nothing to worry about yet. It even showed me examples of what a rejection letter would look like versus an acceptance notice. Knowing the difference saved me from panicking! The tool also explained exactly when I should expect the next communication. Definitely going to use this again for future tax notices.

If you're really concerned about your Form 5329 status, don't waste time with the regular IRS phone number where you'll be on hold forever. I used Claimyr (https://claimyr.com) to get through to an actual IRS agent in about 20 minutes instead of the usual 2+ hour wait. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed my RMD penalty payment was received and explained exactly what was happening with my case. Totally worth it for the peace of mind.

I need to publicly eat my words about Claimyr. After dismissing it as a scam, I was desperate when my Form 5329 situation got more complicated (received a second letter asking for more documentation). Tried the service and was connected to an IRS agent in about 25 minutes when I had previously spent 3+ hours on hold without reaching anyone. The agent walked me through exactly what additional documentation I needed to provide for my RMD penalty waiver request. Saved me from what would have been another botched submission and more delays. The service is legitimate and actually works.

I need to publicly eat my words about Claimyr. After dismissing it as a scam, I was desperate when my Form 5329 situation got more complicated (received a second letter asking for more documentation). Tried the service and was connected to an IRS agent in about 25 minutes when I had previously spent 3+ hours on hold without reaching anyone. The agent walked me through exactly what additional documentation I needed to provide for my

Something important nobody mentioned yet - check if you qualify for a waiver of the 50% penalty for the missed RMD. If you had reasonable cause (like serious illness, death in family, bad financial advice, etc.) and have now taken the required distribution, the IRS often waives the penalty. You need to attach a letter explaining the circumstances with your Form 5329. If you already filed without requesting the waiver, you might still be able to send a follow-up letter requesting reconsideration.

Has anyone had success getting these penalties refunded? I'm in a similar situation where I paid about $1,200 in penalties for a missed RMD from my inherited IRA because the brokerage never notified me it was due. Currently waiting on my waiver request.

I went through almost the exact same situation last year! That acknowledgment letter you received is completely normal - it's basically the IRS saying "we got your paperwork and we're processing it." The fact that they cashed your check is actually a good sign that they're moving forward with your submission. In my case, I waited about 10 weeks after that initial letter and then received a final notice that my Form 5329 was accepted and the matter was closed. No additional penalties, no follow-up required. The waiting is definitely nerve-wracking, but it sounds like you did everything right by including the explanation letter and paying the calculated penalty upfront. One thing I learned is that if the IRS had any major issues with your submission, they would have sent a more detailed letter asking for clarification or additional information. The generic acknowledgment usually means you're on the right track. Hang in there!

Maxwell, I totally understand your frustration with that vague IRS letter! I went through something similar with my own RMD penalty situation about 6 months ago. Those acknowledgment letters are intentionally generic - they're basically just saying "we received your paperwork and it's in the system." The good news is that you did everything correctly by filing Form 5329 with an explanation letter and paying the penalty upfront. In my experience, when you handle it this way, the IRS rarely comes back with additional issues. They're mainly looking to see that you've acknowledged the mistake, calculated the penalty correctly (which sounds like you did at $875), and taken steps to prevent it from happening again. I'd recommend waiting at least 12 weeks from your original submission date before getting concerned. The IRS is still dealing with processing backlogs, and RMD penalty cases aren't high priority for them since you've already paid. If you don't hear anything after 3 months, that's usually a sign that your case was processed successfully and closed. Also, don't beat yourself up too much about missing the RMD when your advisor retired suddenly - that kind of unexpected situation is exactly why the IRS sometimes grants penalty waivers if you can demonstrate reasonable cause!

I'm going through almost the exact same thing right now! Filed my Form 5329 about 7 weeks ago for a missed RMD (also due to advisor issues - mine moved firms and the transition got messy). Got that same frustratingly vague acknowledgment letter that tells you absolutely nothing useful. Reading through all these responses is actually making me feel much better about the situation. It sounds like this is just how the IRS operates with Form 5329 submissions - they send the generic "we got it" letter first, then take their sweet time processing everything before sending any kind of final resolution. The timeline everyone's mentioning (8-12 weeks) seems pretty consistent across different people's experiences. I'm trying to be patient but it's hard when you're wondering if you're going to get hit with additional penalties or complications. At least I know I'm not the only one dealing with this kind of confusing communication from the IRS!