cred65 Posted March 27, 2009 Report Share Posted March 27, 2009 TP withdrew an RMD of $5K from AIG and rolled over $37K to another broker in Apr 2008. The 1099 R issued by AIG reported the full $43K as taxable in Box 2a. After preparing the return an informing TP that the large amount of tax due was because of this, she informed the new broker of this and he has documentation for support of the rollover. The TP and the new broker called AIG to see if they would issue a corrected 1099R. AIG said they could not comply. Question would be the proper way to file this return after the correction is made. Should it be manual filed with supporting documentation? Or e-filed and supply documentation when a notice of deficiency is issued? TIA Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 27, 2009 Report Share Posted March 27, 2009 TP withdrew an RMD of $5K from AIG and rolled over $37K to another broker in Apr 2008. The 1099 R issued by AIG reported the full $43K as taxable in Box 2a. After preparing the return an informing TP that the large amount of tax due was because of this, she informed the new broker of this and he has documentation for support of the rollover. The TP and the new broker called AIG to see if they would issue a corrected 1099R. AIG said they could not comply. Question would be the proper way to file this return after the correction is made. Should it be manual filed with supporting documentation? Or e-filed and supply documentation when a notice of deficiency is issued? TIA I would fill out return correctly, and supply proof later if asked, which I doubt you will be. (Documentation now would be ignored or lost.) I'm sure this happens all the time, just get your part right, and don't worry about. That's my motto. I have a client who is 69 years old, and Northern Trust puts code 1 in the dang box every year. I called em the first year, then realized I don't have time for this. I just complete Form 5329 and move on. Can't save em all, Hasselhoff. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted March 27, 2009 Report Share Posted March 27, 2009 So the taxpayer did not withdraw an RMD but rather an amount (probably all) and rolled it over to a new IRA or an existing one. I would make sure to get a copy of the documentation to verify the rollover complied with the 60 day rule. You would then put the amount in the rollover box below the taxable amount. taxbilly Quote Link to comment Share on other sites More sharing options...
grandmabee Posted March 27, 2009 Report Share Posted March 27, 2009 So the taxpayer did not withdraw an RMD but rather an amount (probably all) and rolled it over to a new IRA or an existing one. I would make sure to get a copy of the documentation to verify the rollover complied with the 60 day rule. You would then put the amount in the rollover box below the taxable amount. taxbilly Maybe I'm not thinking here but if you have an RMD and then you roller over part of it. First if not an internal transfer aig did it correct. you show on line a and b the correct taxable. But how can they.... oh I see they took more than the RMD thats how they could roll some over. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 29, 2009 Report Share Posted March 29, 2009 So you fill out the worksheet that part of it is a rollover, and 'ROLLOVER' gets put beside line 15a and the taxable amount (not rolled over) goes on 15b and everyone is happy and hopefully no CP2000. If there is, you show them the docs proving the rollover. Quote Link to comment Share on other sites More sharing options...
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