1099R different than amt actually received

[schirallicpa]

Client had annuities thru Prudential and transferred all to another agency. Most of the 1099's simply have a code 6.

First question:

One of the 1099s was an endowment and is coded as normal distribution. Total dist. $59717; taxable dist. $43221, Emple contrb $16497. He received a check for $27072. (No withholding tax.) Prudential says he was paying premiums from loans from his policy - which accts for the difference. He has no record of said loans. Can I do anything more with this? Or it is what it is.

Second question:

On 3 of these other 1099s with code 6, the employee contribution exceeds the distributions to the tune of $5253. Perhaps again this is a case of loans paying premiums. Again - anything to do on this?

I've never run across this situation before, although I am aware that a loan not repaid would be taxable. It just strikes me odd that he isn't aware of any of these "loans" and Prudential will not provide any more info.

And then I've got the agent telling me he's got capital gains tax on the differences.............And his figures are totally different than the 1099.

Perhaps I'm chasing my tail?

Any thoughts would be appreciated.

thanks

[kcjenkins]

Well, we are not talking about the sort of 'loan' where you get sent a check for the money you borrowed. We are talking about paying premiums not by sending them a check, but by paying it out of built up 'cash value'. So, no, he will not have a loan document, and he won't remember that loan, just that they told him he did not have to pay the payment if he wanted to take it out of his cash value.