1099-R

Forum|Forum|4 years ago
July 12, 2022
2 replies
12 views

In 2019, I entered distribution amounts from (2) 1099-R along with Federal tax withheld on the form. The amounts entered appear on the final tax return. The IRS is now saying that the amount entered should have been reported as Wages and is fully taxable. They have sent a deficiency notice. I reviewed the return and everything seems to be entered correctly. Any idea what may be going on?

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rjs

Level 15

On your 2019 Form 1040, what are the exact amounts on lines 4a, 4b, 4c, and 4d?

Please answer the following questions separately for each 1099-R.

What are the exact amounts in boxes 1 and 2a?
Is "Taxable amount not determined" checked in box 2b?
What is the distribution code in box 7?
Is the IRA/SEP/SIMPLE box checked?

weatherstoneAuthor

Level 2

4a. Blank

4b. 0

4c. 204885

4d. 38431

Form (1) Form(2)

1. 173431.13 1. 31453.83

2a. 173431.13 2a. 31453.83

2b. BLANK 2b. BLANK

4. 34686.22 4. 0

Distribution: 7 Distribution: M7

IRA SEP Box Blank IRA SEP Box Blank

rjs

Level 15

The amount on Form 1040 line 4c is correct. It's not clear why only $38,431 of the total distribution is shown as taxable on line 4d.

Do you know why the full amount is not treated as taxable?

On the Form 1040 is there any notation to the left of the amount on line 4c or 4d, such as PSO or ROLLOVER?

Did you roll over part of the distribution to another retirement plan of any kind?

Is there an amount in box 5 or box 9b on either 1099-R? If so, what are the exact amounts?

What kind of plans are the distribution from? Is it a regular pension, from which you received monthly payments? Or is it a lump-sum distribution? Is "Total distribution" checked in box 2b on either 1099-R?

Are both 1099-R forms from the same plan?

Is 2019 the first year that you received distributions from either plan?

Did you receive these distributions because you retired, or for another reason? If you retired, in what year did you retire and begin receiving distributions?