Phil Marti wrote:
- quote -

Actually my suggestion would be to do nothing, unless and until he hears
something from IRS. then explain what happened. Don't make waves.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"jake" wrote:

- quote -

So everyone calm down and report it as a rollover on the 2008 return. If
you're already filed, amend it.

Life's too short to get exercised about something like this.
--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

A form 1099-R was sent to a relative in the amount of 160.00 showing "Total
Distribution" and "....report this as Income to IRS..."

The problem is, this amount was rolled over to an IRA account by the custodian, no
money was ever received by the individual, the form is clearly in error and the
custodian itself is non-responsive.

The person has also already completed and filed electronically their 2008 taxes so
apart from asking the sender of the incorrect 1099-R to resubmit it, what else should
be done? If the custodian of the 160.00 decides to ignore requests to correct the
form, is this a reason to write to the IRS and submit pre-emptively evidence that the
amount was rolled over directly between two custodian entities and no funds were ever
handled by the taxpayer?

Anything else?




========================================= MODERATOR'S COMMENT:
If this was a direct transfer from the 401k plan administrator
to the IRA custodian, the Taxable Amount box should be zero or blank, and
box 7 should be code "G" and, if so, it was reported correctly.

The box 1 amount goes on form 1040 line 16a and is not added to line 16b.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >