Forgot to include 1099-R (Code G direct rollover, Taxable amount $0.00) in the returns. Do I have to amend the returns? If yes, should I amend the State returns as well?

[Affordabletaxes2021]

Setup an account with irs.gov to access tax transcripts. They may provide more information. Look for account transcript.

[Critter-3]

You have 2 options ... mail in an amended return now to explain the missing entry  or wait 2-3 years to respond to an IRS CP2000 notice when it comes in the mail... your choice.  

[Carlottad]

Thank you for the answer. When the IRS will send me a CP 2000, would I only need to accept their change or will there be a penalty to pay (even if there are no changes in tax liability)? Amending my return would require to have to re-do my 2022 taxes just to add 1099R? (Thanks again! 

[Mike9241]

if there is no change in your tax liability there should be no penalties or interest. However, if your liability increases the penalties and interest increase each month. so waiting for the CP 2000 if it takes 2 years would cost you in penalties and interest about 30% of the additional tax 3 years about 40%. The %s are not exact and may be high because the interest rate changes. The penalty for late payment is .5% per month since 4/15/2023 (unless you're in California) interest is currently about 8% per year (about 0.022% per day compounded daily). if you are penalized you may be able to request abatement of penalties. Interest can not be abated. 

[Carlottad]

Thanks @Mike9241 

Since my transfer was not taxable as it was a tax free trustee to trustee, qualified transfer, doesn't that mean that there should be no changes in my tax liability or in order to be sure I have to re-do my 2022 tax return and include that form?

If there is any risk that my liability increase, then I would definitely try to to amend the return even if being abroad it is quite complicated...

Thanks again!

[Critter-3]

There will be no penalties or interest for this situation however you can choose to amend now and get ahead of the IRS notice  or wait for it to come in the mail and address it then to refute the taxes/penalties/interest that will be on that notice.  You will have to address it eventually so choose when/how you will handle this return error. Personally I would do it now so it is not hanging over your head for that IRS notice to come. 

[Mike9241]

@Carlottad if box 7 of the 1099-R contains code G or H (code H is for Roth to Roth direct rollovers)  that tells the IRS it's a direct rollover. by their nature direct rollovers are not taxable and the IRS should know this. you might not even get a notice. so there is no need to worry about taxes, penalties or interest and I would not file an amended return. should you get a notice, respond timely that this was a non-taxable direct rollover from trustee to trustee  from type of account the money came from to type of a/c the money was transferred to. include copy of 1099-R  

Code G/H would not be used if this was a transfer from a taxable a/c to a ROTH a/c and would be taxable or vice versa. which may or may not be taxable depending if the Roth a/c was opened 5 years ago. 

[drad0001]

Thanks @Mike9241 

This is what I thought and also what my financial advisor said (and what I think the IRS website says as well). Thanks for your help!