IRS Form 4972 Tax on Lump-Sum Distributions

What Is IRS Form 4972?

This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury. As of today, no separate filing guidelines for the form are provided by the IRS.

FAQ

Q: What is IRS Form 4972?
A: IRS Form 4972 is a tax form used to calculate and report the tax on lump-sum distributions from qualified retirement plans.

Q: What are lump-sum distributions?
A: Lump-sum distributions are one-time payments from retirement plans, such as a 401(k) or pension plan, that are paid out in a single year.

Q: How do I report the tax on lump-sum distributions?
A: You report the tax on lump-sum distributions using IRS Form 4972. The form helps you calculate the tax owed and reports it on your individual tax return.

Q: What information do I need to complete IRS Form 4972?
A: To complete IRS Form 4972, you will need information from your retirement plan, including the total distribution amount, your cost basis, and any additional taxable amounts.

Q: Are all lump-sum distributions subject to tax?
A: Not all lump-sum distributions are subject to tax. Certain distributions, such as those from Roth IRAs or after-tax contributions, may not be taxable. It's important to consult the instructions for IRS Form 4972 or a tax professional for guidance.