Bill from IRS - recharacterization of Roth conversion

[geekette]

In August of 2015, we did a Traditional to Roth conversion of about $23k.  In October of the same year, we recharacterized it back to Traditional (including a small amount of gains), expecting that would wipe out the tax liability.

We just got a bill for taxes on the conversion. 

Before I go nuts, I was correct that the recharacterization should wipe out the taxes, right?  I don't know if I should call Fidelity or just write a note to the IRS with copies of the (cryptic to me) Fidelity statements from that year.

[MDM]

Before I go nuts, I was correct that the recharacterization should wipe out the taxes, right?

Based on what you wrote, yes.

See IRA recharacterization - Bogleheads for more.

[geekette]

Thanks.  Now I just need to figure out what the IRS needs.

[geekette]

Fidelity pointed me in the right direction for forms, and (months later) we got a notice from the IRS that they agree with us, and we don’t owe money.

Phew!