@vmanno03 wrote:
Can't I just remove it? I did not receive any of the money so it should not be counted as income anyway.
If you received a 1099-R and you don't report it on your tax return, the IRS will assume the entire amount is taxable and subject to penalties, late fees and interest and send you a bill. You will then need to appeal the bill by reporting it was a rollover, possibly you will have to provide additional proof of the rollover, and if you don't appeal within 30 days the tax due becomes final.
Basically, all your income is assumed to be taxable unless you claim something different in writing. If the IRS sees the income, and you haven;t properly explained it on your tax return, they will bill you for the tax they think you owe.
Best to do it right the first time.
