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Retirement tax questions
However, I would not be surprised if you receive a bill form the IRS in about a year for the tax, since the 1099-R that they now have will not match what ia on your amended return. The substitute 1099-R has an explanation statement that explains it but simply using a regular 1099-R does not. IRS computers do the matching and generate the letters in most cases, humans do not review them. I always thing it better to file the substitute with the letter.
I always advise to NOT file a "dummy" 1099-R prepared correctly with the original (2020) tax return before receiving the actual 1099-R in order to avoid having to amend later unless you *KNOW* that the IRA custodian will issue a 1099-R with code JP, box 1 with the total returned amount and box 2a is only the earnings and the trustee tells you in advance exactally what will be on the 1099-R.