Thanks guys for all the good info and confirming what I considered were going to be major issues to deal with next spring unless fixed now while fresh in mind for all those involved.
I spent the early morning in conference over the issue, and the parties involved have agreed to go back and see what they needed to do to fix their database. Also got a copy of the "Withdrawal/Transfer" form upon which they had neglected to put one little check mark showing a transfer to like IRA account.
My fingerprints are not on any of the cash involved. Checks were properly made out to the destination custodian groups. Should have been just a normal like to like transfer and no 1099's involved.
Just waiting now for them to get back to me. A classic case of "haste makes waste", with a lot going on that day and not making sure each line item was correct.
