He must report that on his tax return. The box 2a amount is taxable income and also subject to a 6% early distribution penalty. Failure to report it and pay the tax will result in a IRS audit letter in about a year.
The 1099-R indicates that the money was distributed to him. If he never received it then contact the 401(k) trustee.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
