weatherstone
Returning Member

1099-R

In 2019, I entered distribution amounts from (2) 1099-R along with Federal tax withheld on the form. The amounts entered appear on the final tax return. The IRS is now saying that the amount entered should have been reported as Wages and is fully taxable. They have sent a deficiency notice. I reviewed the return and everything seems to be entered correctly. Any idea what may be going on?