- quote -

I think it would end up being a line entry on the pension
line or best case idea, just not having to plug in all the
info, EIN, address, etc. The income will still be taxable.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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"Don Priebe" <priebe[at]iname.com> wrote:

- quote -

If you don't key in and transmit the 1099-R, then it would
escape taxation. I believe the IRS is simply clarifying the
existing rule which is that you only ATTACH 1099-Rs if there
is withholding. If there is no withholding they are still
taxable in many cases, and you still key in the data on the
tax return.

However, the new rule may mean that you leave out PART of
the info that you used to fill in such as the address of the
payer. Maybe you can even leave off the payer's EIN, but if
you leave off the whole thing, this opens a new form of
nontaxable income as good as municipal bond interest or
better. No more tax on IRA withdrawals if no tax is WH?

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Don Priebe wrote:

- quote -

I was just talking Thursday at a luncheon meeting of an
Arizona Society of CPAs group with a member of ETAAC that
told me she had been pushing hard for that change and that
it was going to be made--glad to see she was right <grin> .

--
Ed Zollars, CPA
Phoenix, Arizona

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From the IRS Quick Alerts 8/22/03 ...

<quoteError Reject Code 502 will be clarified in the 2003
Publication 1346 to read as, "Form 1099-R is ONLY required
when Federal income tax is withheld." Every Form 1099-R
received with an e-filed return must have an Employer
Identification Number (EIN) and that EIN must match IRS
Master File or the return will reject. Therefore, if no
Federal income tax was withheld, Form 1099-R is not required
and should NOT be transmitted as part of the electronic
return.
</quote
Less data to key in!

--
Don EA in Upstate NY

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