Putting a regular distribution back into an IRA is a rollover. I did mention in an earlier post here that such a rollover is only permissible if it does not violate the one-rollover-per-12-months limitation. Note that if you moved funds were moved by trustee-to-trustee transfer (which is neither a distribution nor a rollover) or if the rollover was to or from an employer plan that is not an IRA, those do not count toward the limitation. If you did do a reportable IRA-to-IRA distribution and rollover within the one-year period ending on the date of the September distribution, then you can't roll the regular distribution back into the traditional IRA. However, you can roll it over to a Roth IRA as a Roth conversion since those are also disregarded with respect to the limitation, but you would owe tax on the conversion.
The explanation accompanying your amendment would simply indicate the date of your original $7,000 contribution, the date and (correct) amount of the loss-adjusted distribution and that it was done pursuant to section 301.9100-2 of the tax code. Your amendment would also include the amended Form 8606 showing $0 on line 1. This explanation takes the place of any Forms 1099-R so no Form 1099-R is needed for the amendment.
If the custodian will not report the distributions correctly, you'll need to file substitute Forms 1099-R with your 2022 tax return reflecting what the custodian should have reported which include a description of your attempts to get the custodian to correct the reporting and why the custodian's reporting was incorrect.
