mcb39 Posted July 21, 2014 Report Share Posted July 21, 2014 This is in reference to the four years of returns that I have been working on for a client. We intentionally skipped 2011 because the transcript shows that he had a $30,000 distribution from his IRA. The transcript shows it as code 7 and taxable. The client claims he never received the money or the 1099. (Questionable on the 1099, but I believe him on not receiving the money, for various reasons.) How can I report this as a rollover or other non-taxable event????? We are current with 2010, 12 and 13. Complications have arisen, probably due to the IRS cutbacks. The Agent handling this case called me last week and said that everything was fine, but he would no longer be at that job after the end of last week. He said I had to file the 2011 return with the IRS Service Center. I'm sure we are all aware of what kind of mix-up this is going to create. However, he is going to work for the State and I no longer have a point of contact. Where do I mail this return when it is finished and/or could it still be e-filed? Client comes in tomorrow with the results of the research he has done over the untraceable 1099R that he supposedly got from TD Ameritrade.; the holders of his IRA in 2011. Any advice or direction would be appreciated. To date, client has been extremely cooperative and pleased with the results of the three years that have been filed. TIA Quote Link to comment Share on other sites More sharing options...
MDEA Posted July 21, 2014 Report Share Posted July 21, 2014 Return can be e-filed.Make sure he did not do a rollover. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted July 21, 2014 Report Share Posted July 21, 2014 Can he call his broker and have it traced? I had the opposite case happened, TP insisted they never took out their IRA, TP was right, it was the parent that took out and she was taxed. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted July 21, 2014 Author Report Share Posted July 21, 2014 Can he call his broker and have it traced? I had the opposite case happened, TP insisted they never took out their IRA, TP was right, it was the parent that took out and she was taxed. He is no longer with or happy with the broker. Apparently there were other odd transactions under that broker's watch. TD Ameritrade is not cooperating with him either. When I look at the IRA values shown on the transcripts from year to year; they are not consistent with a $30,000 withdrawal. They are, however, inconsistent. The client claims that while he was with that broker, he lost a vast amount of money in one year and then after complaining, recouped some of it the following year. I would really like to see the EOY reports from the account, but apparently he doesn't open all of his mail and is still digging for those. Will see what he comes in with tomorrow. Apparently TD Ameritrade agrees that the funds were disbursed, but they cannot or will not seem to tell him where the money went. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted July 21, 2014 Report Share Posted July 21, 2014 The only thing I can suggest is to really get to bottom of it, I would be very concerned if it happened to me. MAS p.s I am on my way to Wisconsin Dells, in case anyone wants to stop by and talk taxes. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted July 21, 2014 Report Share Posted July 21, 2014 The money went somewhere. Follow the money. If it was rolled over using trustee to trustee, then the 1099R is incorrect.If the "questionable" broker had the money withdrawn with a check written to both the client and the new qualified account, then deposited it, the client would never have seen the money. The receiving investment company would have issued a 5498 showing the investment into a qualified account. This would be on the transcript.However, if the money was put into an investment that was NOT qualified without the client's knowledge, then it is taxable. However, the client would have been receiving some sort of statements from the investment.There is missing information here. Follow the money. Get ALL the facts. Too many gaps... Quote Link to comment Share on other sites More sharing options...
mcb39 Posted July 21, 2014 Author Report Share Posted July 21, 2014 I know; I wish he would bring down all of his Ameritrade statements and let me open them. In the meantime; time is ticking and interest is accumulating. BTW, taxpayer is 69 so his parents did not draw the money out for him. He did not trust the broker he had at the time which is why he withdrew his business. This is going to be a hard nut to crack. The discrepancies in FMV of his IRA from year to year also bother me. Things just don't add up. I would really like to get this put to bed so I can move on. Quote Link to comment Share on other sites More sharing options...
Max W Posted July 21, 2014 Report Share Posted July 21, 2014 Could he have been using the retirement fund money to make margin calls? Quote Link to comment Share on other sites More sharing options...
mcb39 Posted July 21, 2014 Author Report Share Posted July 21, 2014 Could he have been using the retirement fund money to make margin calls? We're thinking he was using it for "something"! 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted July 21, 2014 Report Share Posted July 21, 2014 We're thinking he was using it for "something"!And the client is unwilling to admit what "something" was. However, the IRS does not care!!Tell him to fess up so you may possibly be able to help him, or simply pay the notice. 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted July 21, 2014 Author Report Share Posted July 21, 2014 And the client is unwilling to admit what "something" was. However, the IRS does not care!! Tell him to fess up so you may possibly be able to help him, or simply pay the notice. Jack, I really believe him when he says he doesn't know where the money went. I am not saying that excuses him from not paying closer attention as to what was happening with his retirement money. Do brokers really have that much control over investors' money? I have never trusted them and do my own financial planning. I have seen too many widowed ladies come in with pages and pages of buys and sales; often resulting in a large capital loss; until they get their money invested into a safe interest bearing account. I am not against the buying and selling of stock, I just don't think anyone should blindly allow another person to make trades that they absolutely do not understand. That includes the client that I am working with now. He may be a man, but he doesn't have a clue about selling anything other than Industrial Tools. 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted July 21, 2014 Report Share Posted July 21, 2014 Jack, I really believe him when he says he doesn't know where the money went. I am not saying that excuses him from not paying closer attention as to what was happening with his retirement money. Do brokers really have that much control over investors' money? I have never trusted them and do my own financial planning. I have seen too many widowed ladies come in with pages and pages of buys and sales; often resulting in a large capital loss; until they get their money invested into a safe interest bearing account. I am not against the buying and selling of stock, I just don't think anyone should blindly allow another person to make trades that they absolutely do not understand. That includes the client that I am working with now. He may be a man, but he doesn't have a clue about selling anything other than Industrial Tools.People give them full reign and never check up on them. It is a common problem. The brokers make transactions to generate commissions and until there is an issue like this, most people are apathetically clueless intentionally. Quote Link to comment Share on other sites More sharing options...
SaraEA Posted July 22, 2014 Report Share Posted July 22, 2014 If TD Ameritrade will not cooperate, call again (or you might have to have the client call) and ask for the Compliance Department. (To the person on the other end of the phone this is like pushing the red button to talk things over before the nuke attack begins.) Explain that you have reason to believe money is missing from a client's account and that you demand account history and especially details on the rollover. They might not sound too happy to help at first, but they know your next step is the SEC and should come around. Just maybe the broker is no longer there because of similar problems in other clients' accounts? TD Ameritrade has been named in many FINRA cases. Threaten all you have to. Hopefully they don't want anymore trouble. I had several clients with the same broker at Ameriprise who had insane numbers of trades and huge losses. I had each of them contact the Compliance Department. One was paid for most of his losses (after a few low-ball offers). The others are still waiting. I will say that since I had these clients file complaints, their accounts have been much better managed--investments that make sense for people their ages, minimal trades, etc. I had a few other clients at smaller firms I told to talk things over with their brokers about what was going on in their accounts and why they were being charged such massive fees. In every one of these cases, the brokers contacted me, learned more about our mutual client's financial situation, and made much better investment choices. Many of them still call me every year to see if the client's needs have changed. Sometimes all it takes is for these people to learn that someone else is looking over their shoulders to convince them to act in the client's best interest. 3 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted July 22, 2014 Author Report Share Posted July 22, 2014 If TD Ameritrade will not cooperate, call again (or you might have to have the client call) and ask for the Compliance Department. (To the person on the other end of the phone this is like pushing the red button to talk things over before the nuke attack begins.) Explain that you have reason to believe money is missing from a client's account and that you demand account history and especially details on the rollover. They might not sound too happy to help at first, but they know your next step is the SEC and should come around. Just maybe the broker is no longer there because of similar problems in other clients' accounts? TD Ameritrade has been named in many FINRA cases. Threaten all you have to. Hopefully they don't want anymore trouble. I had several clients with the same broker at Ameriprise who had insane numbers of trades and huge losses. I had each of them contact the Compliance Department. One was paid for most of his losses (after a few low-ball offers). The others are still waiting. I will say that since I had these clients file complaints, their accounts have been much better managed--investments that make sense for people their ages, minimal trades, etc. I had a few other clients at smaller firms I told to talk things over with their brokers about what was going on in their accounts and why they were being charged such massive fees. In every one of these cases, the brokers contacted me, learned more about our mutual client's financial situation, and made much better investment choices. Many of them still call me every year to see if the client's needs have changed. Sometimes all it takes is for these people to learn that someone else is looking over their shoulders to convince them to act in the client's best interest. Thank you, Sara. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.