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Had a similar case some years back and felt the same way as Beckster (all IRAs need a 1099). Called the sending bank and asked ("Where's my 1099?"). That bankster ended up schooling this tax pro - his reply: "It's direct to another bank - we don't have to send him one." So, after advising him that he was mistaken, I looked it up and found advice as per Lion's above. Quite embarrassing! But those moneychangers aren't always right. That same bank prez later told one of my clients "It's too bad you built it yourself. Self-constructed houses don't qualify for the $8,000 new home credit." I looked it up: they WERE (and I got it for him). Never got around to calling bank and saying touche, darnit. Moral for clients re advice: Avoid bankers and stick to the hairdressers (their bologna is less costly).

Years ago I had a client who was an appliance repairman. He received a 1099 Misc from Whirlpool for warranty work in the amount of $5,000. He received a computerized matching notice from the IRS saying the amount should be $50,000. To my surprise,I just sent in a simple letter explaining the correct amount was $5,000 which the IRS accepted.

I had a similar situation a few years ago with a client who received a notice saying she had received 16300 in royalties that weren't reported on her tax return. The 1099MISC showed $163.00. I simply wrote a letter and attached a copy of the 1099MISC and the IRS corrected it.

Years ago, my own client sent me a 1099 for $900 with the cents showing. They used QB with a very small font. I received a letter from IRS showing it was $90,000. I almost fainted. I sent a letter with a copy of the 1099 enlarged so the decimal showed up better. IRS accepted my explanation. Whew!

IRS Pub. 4012 https://apps.irs.gov/app/vita/content/globalmedia/1099r_exclusion_worksheet_4012.pdf A taxpayer should not receive a Form 1099-R for a trustee-to-trustee transfer from one IRA to another, but should receive a Form 1099-R for a trustee-to-trustee direct rollover from an employer qualified plan to an IRA with code G.

You don't have to, but you are supposed to. Over the years I've nomineed plenty of things off of one return onto another return and never had a problem. I think this is because the IRS matched the one 1099 they had, and the IRS won't normally question income on your return, for which they don't have a 1099.

"We CAN, but we don't have to." So we preparers are left to deal with the aftermath. No client wants to get a "nastygram" 2-3 years down the road, so we have to verify if they "did" or "didn't".

"Corrupt? Incompentent? Or both?" Maybe both, be curious to see how he justifies $500 on his invoice, if he prepared the K-1 he should take responsibility for it. I agree with all of that. Also a call to TPP hotline might even solve it.

The problem with using the nominee route is that you have to issue 1099s to the nominee.

The Internal Revenue Service recently suspended a half dozen of its modernization programs, including two deemed essential to its plans for replacing its aging systems, according to a new report. The report, released Tuesday by the Government Accountability Office, urged the IRS to complete its long-delayed modernization plans and fully address its cloud computing requirements. The GAO report said two of the suspended initiatives are essential to replacing the IRS's 60-year old Individual Master File system. The IMF is the authoritative data source for individual tax account data, and the IRS has been working on replacing the IMF for more than a decade. "According to officials, the suspensions were due to IRS's determination to shift resources to higher priorities; staff members working on these suspended initiatives were reassigned to other projects," said the report." It sounds like the IRS is sacrificing long term goals in order to deal with the short term problems of answering the phone and tax return processing. Gosh it would be nice if the IRS could walk and chew gum at the same time?

"Next week the IRS will begin accepting electronically filed 2022 amended returns with direct deposit information. The IRS will not allow direct deposit if an amended return is paper filed." Every little bit helps

So , Wells Fargo is correct and the IRS will not be expecting a 1099R. Good. One less form for them to deal with.

These notices always seem (seemed) to land in the TP's mailbox on Friday - so they have to sweat it all weekend. My story is no different, six frantic messages on my home phone from client Friday evening. Then he was beating on the "locked" door of the office @ 6:00am Saturday morning. State Farm 1099 for 1K, IRS said 100K, the tax bill for this small garage was almost 3 times the highest Gross Income he had ever reported. (BTW, this TP died from a heart attack in his late 40's. I know this didn't cause it, but I still remember the stress it caused.) 30 years later, this still p*sses me off to think about it. And this organization now has a $700,000 (that we know about) stockpile of ammunition? ? ?

Usually, in every case of a client rollover, a 1099-R is issued as a taxable Distribution. Then the client has to show that the rollover occured on a timely basis. This client should keep the relevant bank/brokerage statements to substantiate the timely rollover - just in case.....

Enter the 1099B as usual. For the sales that occurred after death, start another line and put "IRD reported by {estate EIN}." Then enter the after-death amounts as a negative number. Do the same for any interest or divs paid after death. Be sure to include those amounts on the 1041 with the line reading "IRD reported to {decedent SS#}." In essence, you're reporting the 1099B amounts to match the IRS records, then backing out the amounts that belong to trust. You will have to comb those 68 pages for before and after transactions, so charge accordingly!

"Cannot Open Return The return you selected cannot be opened. Please restore a previous version of the return and try again." I won't include the words I said following that. So, it's Sunday afternoon and I am going home to a bunch of people at my house to watch the Super Bowl. So maybe it will all be better tomorrow........

it opened this morning! I don't know what little gnomes were causing me grief yesterday, but it opened today!! Is there a Saint for that - I feel like I need to say thanks..

This a huge, extremely serious situation. I don't say this lightly, because the whole system could collapse at any time. "The IRS does not have adequate information technology (IT) systems to do its job effectively and efficiently. The IRS’s core IT systems are among the oldest in the Federal government, limiting the agency’s capabilities in significant ways. Partly due to historic poor planning and execution and partly due to lack of funding, the IRS has been unable to replace its antiquated systems. Every year, instead, it layers more and more smaller systems and applications onto its core systems. By analogy, the IRS has erected a 50-story office building on top of a creaky, 60-year-old foundation, and it is adding a few more floors every year. There are inherent limitations on the functionality of a 60-year-old infrastructure, and at some point, the entire edifice is likely to collapse." From - https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2020/07/ARC18_Volume1_LR_01_IT.pdf

Wow.

I believe a "volunteer grant" is a donation from a company a volunteer is employed with - to a charity the employee volunteers for. The org. uses it for it's charitable purposes; it is not disbursed to the volunteer as in the case of OP.

Several years ago I had a client who did the 60 day rollover in multiple pieces (Not trustee to trustee ) The rollovers were all done within 60 days, but the stock broker receiving the rollover funds dropped the ball on the paperwork. The IRS took the position that the rollovers didn't qualify. My client was very late getting the IRS letters to me After sending in all of the documentation 3 different times, the IRS agreed to most of the rollovers but insisted that about $ 2,000 didn't qualify and was taxable, Finally I told my client that I had done everything that I could do and advised him that it was up to him to either pay the tax or to call the IRS himself. A classic case of "how not to do rollovers!

See if the client qualifies for self reporting and penalty waiver see https://www.cpa-wfy.com/did-you-miss-the-60-day-deadline-for-your-ira-rollover/

Widow in my extended family, received IRS matching notice on a 1040 for a K1 supposedly showing 9,020 of dividends. The original 1065 (family LLC) was paper prepared and filed, with cents (?! ) on the amounts. The K1 showed 90.20 of dividends, but was apparently keypunched as 9,020 to the member's 1040 account. No other members have received matching notices. CPA advised widow to file an amended 1065, even though the original 1065 was correct. And the bill to date is about $500 for just talking about this. Who knows how much the unnecessary 1065 would cost. And at this point, it's getting close to being more expensive to pay this CPA, than to pay the IRS. I advised to send a copy of the K1 showing the 90.20 in response to the IRS notice, explaining that it was entered wrong by the IRS. All of this could have been avoided by efiling that 1065.

Follow up Note: Even though 1040X can be efiled, the IRS still processes each amended 1040 X manually, which will take over 5 months or more.