"nelson family" <freda_nelson9[at]hotmail.com> wrote:
- quote -

Don't amend anything - wait to hear from the IRS and then
simply explain what happened. It should be just about that
simple - really.

Gene E. Utterback, EA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Joe Sprawling" <nospam[at]blocked.com> wrote:

- quote -

Wow, I have a similar problem. My direct rollover IRA check
came directly to me first also. I filled out the rollover
paperwork and mailed the check to my new employer's plan. I
have already filed by TELEFILE (phone). They just now sent
me my 1099-R showing that I received a premature
distribution of $100,000+ dollars with Code 1 in Box 7. I
have all proof of this transaction which was legal and
non-taxable. How do I amend a TELEFILE???? Help!!!

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

A.G. Kalman wrote:

- quote -

I agree--that is *way* too likely to create a paperwork
nightmare as the IRS ends up processing *both* returns as
original, rather than figuring out the second one is
supposed to replace the first one.

I think this advice comes from confusion about the *legal*
effect of filing a 1040X before the due date. The law has
been fairly clear that if you file an amended return before
the due date, that is now treated as your "original" return
for purposes in the IRC where that's important (like making
a Section 179 election).

But that does not mean you don't use 1040X until after 4/15.

--
Ed Zollars, CPA
Phoenix, Arizona

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Joe Sprawling wrote:
- quote -

Lanny Williams' post said you could just mail the 1040A
without amending as long as it done before 4/15. I never
recommend sending another tax return. I would amend. Why
wait for the inevitable letter from the IRS.

--
Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Harlan Lunsford wrote:
- quote -

I believe that the Code G is proper when the check is paid
to the order of the new trustee for the benefit of the
taxpayer. It doesn't matter that the check is mailed to the
taxpayer.

--
Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

L K Williams wrote:

- quote -

IRS computers can't really "replace" a filed return as
there's no administrative need to do so. An amended return
filed at any time is tacked onto what's already there, and
the correction here (reporting 1099-R, zeroing it out with
fact of rollover), will not show up on computer data except
that some sort of amended was filed. When computer later
sees the mismatch of 1099-R against original 1040EZ which
cannot report such, IRS can let the notice go out. Or they
may view the posting of an amended return with no add'l tax
(unknown as to form #) and still secure the original +
second return for perusal. But it's a leap of logic for them
to think it may have anything to do with a taxable 1099-R.
So it may work to prevent notice in about a year; it may
not.

Fred F.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

L K Williams <lanny[at]loxinfo.co.th> wrote:

- quote -

That's always been my understanding as well. In other words,
if you are "amending" before 4/15, you simply file a second
return (perhaps marked "corrected"). You don't use the "X"
form until after the 15th.

But, more recently, I've seen numerous informal comments
from the IRS asking that the "X" be used in all such cases.
Apparently the "duplicate" filing of what appears to be an
original return causes much confusion.

Hopefully Barney Byrd will notice this and will offer a
current perspective. <g
MTW

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"A.G. Kalman" <agk202[at]netscape.net> wrote:
- quote -

Hello Alan,

You are right in all of your assumptions. The problem is
that I already filed a 1040-EZ two weeks before I received
the 1099-R. Should I still follow your original advice and
amend the 1040-EZ with a 1040-A to report the gross
distribution along with a 1040X? Thanks.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

A.G. Kalman wrote:
- quote -

Disclaimer: I just LOVE T Rowe Price and think they can do
no wrong.

Now then, code G did not apply in thise case, so their
1099-R is most probably correct. IF the rollover had been
direct from trustee to trustee, then there would be the
magic G in box 7. but since his hands touched the money, it
is not a direct rollover. If he did make the rollover within
the sixty days (I'm assuming here,) then form 1040ez is
still not warranted. In any event, the full proceeds are
reported on line .... 16a, even though 16b might be blank to
indicate a valid rollover.

See my other reply; been there, forgot about that; done that.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

A.G. Kalman wrote:
- quote -

Technically, I believe that a 1949X is not required; he could
simply file another return with the rollover shown properly.

As I recall the rule, if a taxpayer files 2 returns before 4/15,
the last return received by IRS is the "official" copy. In
this case, a 1040 or 1040A filled before 4/15 would simply
replace the 1040EZ he already filed.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Joe Sprawling wrote:

- quote -

Strange I know, but I did something similar one time, in
that I forgot, yes, actually FORGOT about a 1099-R
reflecting a check to me that I rolled over into an IRA.

So I simply waited until IRS sent a letter asking why that
16,000$ wasn't on my tax return. I answered the letter
documenting the rollover, said "sorry about that", and case
closed.

So my advice, just wait.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Joe Sprawling wrote:

- quote -

I'll assume you meant to say that Box 2a Taxable Amount
contained the same amount as in Box 1 and that Box 7 had
either a Code 1 or Code 7. T Rowe Price erred in completing
the 1099-R. As they were instructed that this was a
rollover to a qualified plan (how else would they have known
to make the check out to Fidelity rather than you) they were
supposed to place a zero in Box 2a and Code G in Box 7. You
still must report the gross distribution on your tax return
(Form 1040-A Line 11a) and a zero as the taxable amount
(Line 11b).

As we are not anywhere close to 4/15, the optimal solution
is to call T Rowe Price, explain how they screwed up and
have them issue a corrected 1099-R. No matter what happens,
you need to file an amended tax return for 2003 (Form
1040X). You can not file a 1040-EZ. You need to file a
1040-A in order to report the gross distribution. You would
attach the 1040-A (complete it as if it was a new return) to
the 1040X. On the 1040X, you would show that the corrected
amount was the same as the original amount. I.e., no change
in any line item. On the back of the 1040X in Part II,
there is a place where you should explain why you are filing
an amended return for 2003 that has no change.

--
Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I transferred my entire direct rollover IRA of 47K dollars I
had with T Rowe Price into my 403b employer plan with
Fidelity Investments at the beginning of 2003. It was a
tax-free event in accordance with recently enacted laws.

I kept a xeroxed copy of the check which was made out to me
in the following fashion:

Fidelity Investments Cust
FBO Joseph Sprawling

I had it sent to me from T Rowe Price, and then filled out
the Fidelity direct rollover forms and sent the check to
Fidelity. I have extensive records of the entire
transaction...letters to and from both entities, proof of
deposit with Fidelity, Signature Guarantee Letter, etc.

I filed a 1040-EZ earlier this month, but just now received
a 1099-R from T. Rowe Price listing me as the recipient of
the distribution and the entire amount listed in Box 2 as a
taxable amount. It says they sent a copy to the IRS.

My question: Even though the entire amount was rolled over,
and it isn't actually taxable income, should I still try to
contact the IRS directly and send them proof of the direct
rollover, or wait for them to contact me?

This is definitely going to send up red flags since they
will be getting a 1099-R and no explanation whatsoever about
the final destination of the money.

Thanks in advance for any advice.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->