In Form 5329 Part IX, Additional Tax on Excess Accumulation in Qualified Retirement Plans (including IRAs), the additional tax of 25% can be reduced to 10% if the taxpayer meets certain requirements as outlined in the Form 5329 instructions for Line 55.
If you have applied for the reduced rate when completing Form 5329, on the printed form the letters "RC" along with the amount for which the taxpayer is requesting a waiver will appear on line 54. In this context, RC stands for "reasonable cause".
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