I am in a difficult situation and have gotten several different answers from CPAs and a non- tax lawyer about my unusual situation. My mom died in 2023. My 3 siblings and I are the beneficiaries of her NYS pension. My sister is the executor of her estate. In October of 2023, I received a payment of about $6800 with a 10% withholding. The money was deposited in my bank account. Well, the problem is that NYS local retirement system made a huge mistake: this check should have gone to my mom's estate. I was notified in March of 2024. I returned the money that day and the check cleared on March 22. The problem is that I cannot get any answers from the retirement system for the past month despite numerous calls/ faxes and a recent letter from the IRS to them. They have not/ will not re-issue me a corrected 1099-R for 2023. The 1099 is for $7000, but would be $202 if they did not make this mistake (I received a legitimate check for $202) They are completely incompetent and have lied to me numerous times. I have already filed an extension (and have overpaid what I think I owe). Some CPAs / lawyers have told me to file a 1099-R for the correct amount of $202 and explain why there is a difference. Some have a concern that the distribution was made in 2023 but returned in 2024. Had the situation been corrected in 2023, this situation would seemingly be easier. But if I claim the $7000 for 2023, how is this corrected in 2024 for the money I returned? As one of the CPAs said "You can't get a 1099-R for a negative amount."
