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1099 R incorrect distribution code

Tracy Lee

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TP received a 1099 R for $227,701.42 (annuity) with a distribution code of 7D showing all of it as taxable.  He is insistent that it was a rollover into another account, so the code is incorrect.  I have asked him (twice, he's 92 and confused) for the first statement for the company it was rolled over into to show money out and money in.  Can I send that as an attachment and do a rollover explanation in ATX and put 0 in box 2a showing it as not taxable?   I can't seem to find any other way around this to show it as not taxable without waiting for a corrected 1099R.  What is my best option with this, especially working with such an elderly man who keeps bringing me the wrong information.

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I would insist on copies of the actual monthly statement from the first fiduciary showing the the distribution and the date distributed

and the actual monthly statement from the second fiduciary showing the amount received and the date it was received.

While it's possible that the distribution code is wrong it's equally possible that your client is wrong.


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Yes you should include a copy of the statement showing the money going into the account. If it's a 60 day non-direct rollover, the 1099 isn't going to show a correct code. I upload a copy of the statement because the IRS will request it later (and may not even notice it was uploaded).

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