incorrect 1099r

[vonnie70]

i had shares in an open end mutual fund.  The fund went under receivership in 2017 and stopped trading.

The third party administrator and the trustee stopped all communication in 2020.  I closed out the account in September because i was getting penalties on fees not paid for ira admin for $405 per year.  When i closed out the account, despite all verified information sent to the custodian that the asset was no longer viable and defunct, they sent me a 1099R for the NAV value last trade day on record from 2017 for over $5,000.00.

i do not want to pay taxes on this, they refuse to deal with a corrected 1099 though they have all of the information to do so, i guess because i am just a single issue.  How do i offset the 1099R, or where do i offset the 1099R.  Not paying taxes on the money, affects my return quite a bit.

Again, asset has no value, find the information anywhere online, custodian ignored me, and issued asset value shares for the last historical trade day of record in 2017.  how do i offset?  where do i offset in turbotax home and business?

[dmertz]

There is no way to "offset" the taxable amount reported on the Form 1099-R.  Your only option is to file a substitute Form 1099-R (Form 4852) claiming that the Form 1099-R is erroneous and that the payer refuses to make a correction.  Filing a substitute Form 1099-R to show that the value of the shares distributed was $0 (or whatever value you can substantiate) requires printing an mailing your tax return.