On 03/16/2015 I have contributed $5000 to my existing IRA account later while filing my actual taxes in my 1040 form I didn’t mention that I was contributing to IRA and I immediately requested my banker to revert my $5000 contributions. I did see that my contribution has been reverted from IRA account on 05/04/2015. But in the end of last year I received 1099-R with distribution code: P (Excess Contribution/Earnings), what should I do now?
A. If I report this 1099-R document during my current year tax filings, it will indicate that I have done excess contribution last year which I did not.
B. If I neglect/disregard this specific 1099-R during my current year tax filings it will raise triggers to IRS that I avoided reporting all my earnings. Please clarify on how should I handle this situation.
