I believe it is correct that it was reported correctly to the IRS but possibly not to the state. I have several 1099 R's from KPERS in 2008. It seems we moved all kinds of things that year. After finding my 2008 taxes and studying them, it is even more complicated than I stated. We actually moved a lot of things around to simplify retirement. Just my luck for an issue to come up 14 years later.
On the 1099R from the lump sum distribution from KPERS there is not any amount in box 5. There is a distribution code of G. There is no amount listed in box 2 and the total distribution box is not checked. The distribution amount in box 1 is the same amount in the state distribution box 12. No taxes are deducted.
On the second 1099r from KPERS which is the normal KPERS distribution I have received every year since 2008 does have a small amount listed in box 5, however I think that pertains to a Roth contribution. This is the only year that I have had an amount in box 5.
On the schedule S from Kansas the lump sum amount is listed, however I think it is listed incorrectly. It is on a line that actually says do not report KPERS lump sum distributions on this line. We moved a lot of IRA's and annuities that year, so this distribution is larger than the lump sum. We paid a lot of tax that year due to moving all these but made it through the audit without issues.
The clinker is that we actually got audited in 2008 because we missed one of these changes. We sent in an amended taxes to both Federal and state. I am thinking that somehow it got confused in the audit.
I am not too concerned about finding an expert because I am certain this money is kansas tax exempt and believe we have the documentation to prove that with the 1099r KPERS lump sum distribution document. I just hope my financial planner knew what he was doing and put it in a qualified fund and that no additional hiccups come up. I think he did as we have not had any issues come up until now.
I realize we will probably have to have an informal conference with the dept of Kansas revenue to get this straightened out but in an attempt to avoid this, do you think if I sent the State a copy of my 1099's from that year, along with pre and post audit tax documents this would show what happened? Of course, I would also send in the 1099R's for 2019 as requested.
Thank you very much for your help. Opus 17 too!
