Notice code 149

Notice code 149 (Default) — We didn’t allow the amount claimed as IRA deduction on your tax return. You can’t claim an IRA deduc…

We didn’t allow the amount claimed as IRA deduction on your tax return. You can’t claim an IRA deduction unless your participation in the KEOGH, SIMPLE, or Simplified Employee Pension Plan (SEP) was considered inactive. • If you were not an active participant, you should write “NOT AN ACTIVE PARTICIPANT” on this notice and return it to the address at the top of the notice. • If you were an active…

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149

Read the notice carefully and note any deadline. Gather returns, notices, and payment records. Book a free strategy session before responding if the amount is large, unclear, or collection language appears.

What the IRS language says

We didn’t allow the amount claimed as IRA deduction on your tax return. You can’t claim an IRA deduction unless your participation in the KEOGH, SIMPLE, or Simplified Employee Pension Plan (SEP) was considered inactive. • If you were not an active participant, you should write “NOT AN ACTIVE PARTICIPANT” on this notice and return it to the address at the top of the notice. • If you were an active participant, you should file a Form 8606 to report nondeductible contributions. This form will help you determine the nontaxable part of your IRA.