I had an investment in my IRA and the investment company did a settlement to the clients. They refunded monies directly back to my IRA account (no taxable event). However, they sent me a 1099-misc for the refund.
I'm having issues with them about voiding the 1099, but that may take some time. If I report the 1099 and pay tax on the amount I will taxed again when I withdraw the funds from my IRA. Can I just not report the 1099 and be ready to explain to the IRS when they come asking or ?
Any thoughts will be appreciated.
