IRS 8915-E Explained

What is IRS 8915-E?

IRS 8915-E is a tax form designed for individuals and entities to report distributions from retirement plans that were taken in response to the COVID-19 pandemic. This form is essential for those who qualify for the special tax relief provisions included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Users of form 8915-E typically include taxpayers who accessed their retirement savings early due to financial hardship caused by the pandemic.

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Purpose of IRS 8915-E

The primary purpose of IRS 8915-E is to provide taxpayers a means of reporting any qualified distributions from retirement accounts without incurring the usual penalties. This form also allows eligible taxpayers to explain how these withdrawals are treated for tax purposes over up to three years. The concept is part of a broader effort to alleviate financial distress caused by the pandemic.

Where is IRS 8915-E used and by whom?

IRS 8915-E is used by various groups, each with different scenarios:

1.

Individuals: Taxpayers who accessed funds from their retirement accounts early due to job loss or health concerns can report these distributions. For example, an individual who withdrew money from a 401(k) for urgent medical expenses.
2.

Self-employed individuals: Freelancers and small business owners who faced income reduction and withdrew funds from their retirement plans fall under this category.
3.

Tax professionals: CPAs and other tax advisors may use IRS 8915-E to assist clients in accurately reporting these distributions and complying with tax regulations.

Step-by-step: how to fill out IRS 8915-E

Filling out IRS 8915-E involves several steps. Here's a breakdown of each section:

1.

Part I - Required Information: Start by entering your personal information, including your name, address, and taxpayer identification number.
2.

Part II - Reporting Qualified Distributions: Report the amount of qualified distributions you received from your retirement accounts.
3.

Part III - Tax Treatment: Describe how you intend to repay or spread the tax liability of the qualified distributions over the designated three years.

To simplify this process, users can utilize pdfFiller, which allows you to easily fill in the fields, save, and share your completed form.

Who is required to complete IRS 8915-E?

Individuals and entities who took a qualified distribution from a retirement plan and wish to take advantage of the tax benefits offered under the CARES Act must complete IRS 8915-E. This includes:

1.

Individuals who received distributions from qualified retirement plans after January 1, 2020, through December 30, 2020.
2.

Taxpayers wanting to defer the tax due on these withdrawals for up to three years.
3.

Those who wish to spread the financial impact of early withdrawals over several tax years.

Information you need to complete IRS 8915-E

Before filling out IRS 8915-E, gather the following information:

1.

Your personal details (name, Social Security number, and address).
2.

Details of your retirement accounts, including account numbers and plan types.
3.

The amount of the distributions taken.
4.

The dates of the distributions.
5.

Any repayments you intend to make back to your retirement account.

How to submit IRS 8915-E

Once you've completed IRS 8915-E, you can submit it in various ways:

1.

Online: If you are filing electronically, attach it to your e-filed tax return.
2.

By Mail: Alternatively, print the completed form and send it via traditional mail to the address specified in the form instructions.

Be mindful of deadlines; typically, IRS forms must be submitted by April 15th of the following tax year, unless extensions have been filed.

When to update or refile IRS 8915-E

Some situations require the updating or refiling of IRS 8915-E, including:

1.

A change of address that affects your taxpayer file.
2.

Alterations in the amount of distributions that were initially reported.
3.

New repayments made towards the retirement account after the initial filing.

What happens if you don’t file IRS 8915-E?

Failure to file IRS 8915-E or filing it incorrectly can lead to several consequences:

1.

Potential penalties and interest on any unpaid taxes related to unreported distributions.
2.

Increased scrutiny from the IRS, possibly leading to audits for incorrect reporting.
3.

A loss of the ability to defer taxes on qualified distributions, resulting in a higher tax burden.

It's crucial to file accurately and on time to avoid these issues.

Fill out IRS 8915-E online

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Frequently Asked Questions About the IRS 8915-E

What is the IRS 8915-E form and who needs to file it?

The IRS 8915-E form is a tax document designed for individuals who have taken distributions from their retirement accounts due to the COVID-19 pandemic. This form allows taxpayers to report Coronavirus-related distributions, enabling them to spread the tax liability over three years. If you withdrew funds from your retirement accounts between January 1, 2020, and December 30, 2020, you may need to file the IRS 8915-E.

How do I complete the IRS 8915-E form?

Completing the IRS 8915-E form involves several steps including accurately reporting the total amount of distributions taken and specifying which retirement accounts the funds were withdrawn from. You’ll need to provide details about how you intend to pay taxes on these distributions over the three-year period. Using a reliable tax preparation software can simplify this process, ensuring compliance with the IRS regulations pertaining to the IRS 8915-E.

Can I e-file the IRS 8915-E form?

Yes, you can e-file the IRS 8915-E form if you are using tax preparation software that supports this specific form. E-filing the IRS 8915-E can expedite your filing process and ensure quicker refunds if applicable. Make sure to verify that your chosen e-filing platform has the latest form updates to ensure accuracy and compliance.

What specific information do I need to provide on IRS 8915-E?

When completing the IRS 8915-E form, you need to provide information regarding the total distribution amount from your retirement accounts, the IRS code under which the withdrawal qualifies, and details about your repayment plans if applicable. It's crucial to ensure that all information is precise and derived from your IRS records for accurate filing of the IRS 8915-E.

Are there any penalties for not filing the IRS 8915-E?

Failure to file the IRS 8915-E form when required can result in penalties and interest as imposed by the IRS. Additionally, deviations from the tax regulations associated with retirement distributions may lead to an unexpected tax burden down the line. To avoid these consequences, ensure you file the IRS 8915-E timely and accurately.

What tax year does the IRS 8915-E pertain to?

The IRS 8915-E form specifically pertains to tax year 2020, as it addresses distributions made due to the COVID-19 pandemic. This form was introduced to help taxpayers manage the tax implications of these emergency withdrawals. If you took a qualified distribution in 2020, it is essential to include the IRS 8915-E in your 2020 tax return.

Where can I find instructions for filling out the IRS 8915-E?

Instructions for filling out the IRS 8915-E can be found on the official IRS website, which provides clear guidance on how to complete the form accurately. Additionally, many tax preparation software applications include step-by-step instructions to assist users in completing the IRS 8915-E. Thoroughly review these resources to ensure a complete and compliant filing.

How does the IRS 8915-E affect my tax refund?

The IRS 8915-E can directly affect your tax refund, particularly if you’re eligible for offsetting amounts owed due to previous distributions. By reporting and calculating your distributions accurately on the IRS 8915-E, you can minimize tax liabilities that could otherwise reduce your refund amount. Proper handling of this form may aid in securing a more favorable tax outcome.

Can I amend previous year returns to include the IRS 8915-E?

Yes, if you missed filing the IRS 8915-E in your previous year tax returns, you can amend those returns to include this form. It's essential to actively amend your returns to properly reflect the distributions you took and their tax implications. Contact a tax professional to guide you through the amending process for the IRS 8915-E.

What if I didn't receive a 1099-R for my distribution related to IRS 8915-E?

If you did not receive a 1099-R for your distribution relevant to the IRS 8915-E, you are still obligated to report the distribution on your tax return. In this case, you'll need to use your records to determine the amount withdrawn from your retirement account. Contact your retirement plan administrator for assistance in obtaining the required information.

Author:

by Iryna Marchuk

Lead Writer/Blogs Manager at airSlate

Disclaimer: This content is for informational purposes only. It is not legal or other professional advice. airSlate provides this material on an "as-is" basis and disclaims all representations, guarantees, or warranties, whether express, implied, or statutory, including but not limited to warranties of merchantability, fitness for a particular purpose, or accuracy.