I received a form 1099-R after filing my return. The 1099-R only shows a non-taxable rollover from my old 401k to an IRA. Do I need to file an amended return?

[macuser_22 · Accepted solution]

You probably should.   If you do not report that on line 16a on the 1040 form with the word ROLLOVER next to it, the IRS computer that checks tax returns against the 1099-R that they receive from the issuer will assume that you kept the money and will bill you for tax on the entire box 1 amount.  They will not assume that it was rolled over unless it is on your tax return.

You can also just wait for the CP2000 letter from the IRS (takes about a year) and answer the letter with the information that it was rolled over.

To amend your 2015 tax return:

    -- First, wait to see if your return has been accepted or rejected by the IRS or state.
    -- If rejected, you can correct and re-send your return.
    -- If accepted you should wait until your return has been processed and you receive your refund or conformation that any tax due has been paid.  (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time).  In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more). 
    -- Then you can start the amend process. 
    -- Amended returns can only be mailed - allow 16 weeks (4 months) for processing.
   
    See this TurboTax FAQ for help with amending: 
   
https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

You can check the status of your mailed amended return at this link but allow 3 weeks after mailing before checking.
    http://www.irs.gov/Filing/Individuals/Amended-Returns-%28Form-1040-X%29/Wheres-My-Amended-Return-1
   

[Rick865]

So, your saying the IRS won't recognize the code G box 7 or that $0.00 taxable income is entered into box 2a. I saw another response from a Turbo Tax user that said the IRS would see the G. I mention this only because I filed my return and received my refund and then my company sent me a 1099-R for a rollover to a qualified plan (403b) (code G). Now I need to decide whether to amend. I filled out the amendment details in Turbo Tax and found there was no change to my tax liability. One expert says amend to report this; another says it is not necessary practically speaking--the IRS will know what the codes mean. So who should I listen to?

[macuser_22]

Nobody at the IRS will look at your tax return.  The IRS computer will.  When the computer gets the 1099-R form, it will check to see if it is on line 16 on yiur tax return.  When it fails to find it there, it will assume that you took the check, cashed it and pocketed the money and will bill you for the tax on the entire amount.  The IRS never assumes anything in your favor.  If not on your tax return it is taxable income.

Personally, I would not amend, but just wait for the letter (if it ever comes - usually a year after filing) and then send an explanation that it was a rollover and that will satisfy them. The 5498 or bank statement will prove that it was rolled over.

[Rick865]

But the 1099 r already shows code G and 0.00 in the taxable income line showing that this is a rollover. Why would the IRS not read the rest of the 1099r?

[Rick865]

What is the 5498 bank statement? I only got a 1099r about the rollover.

[Rick865]

I should add that my rollover was from a 401k to a 403b

[macuser_22]

A 5498 is a bank statement send in May.  You would not receive one for a 403.

Like I said, personally I would not amend unless the IRS sends a letter.