Individuals maintaining IRAs and surviving beneficiaries under IRAs must usually file an annual information return on Form 5329. Also, an individual maintaining an IRA must make an information filing for each year in which a nondeductible IRA contribution is made or a distribution is received from an IRA. The filing, which must be included with the individual’s return for the year, must disclose (1) the amounts of the nondeductible contributions for the year, (2) the distributions received from IRAs during the year, (3) the aggregate balance in all of the taxpayer’s IRAs as of year-end, and (4) other information the Treasury might require by regulation. A $50 penalty is assessed for failing without reasonable cause to file the information return. Moreover, because nondeductible contributions are recoverable tax free on distribution, a penalty of $100 is imposed if these contributions are overstated in the return and the taxpayer cannot show reasonable cause for the overstatement.