Principal Financial provided me with a 1099r for my 401k with drawl but they failed to file it with the IRS and refuse to. What do I do?

[mywedding55]

My return was accepted on 1/29 and the IRS transferred me to the tax advocate who keeps  hanging up. Principals only solution was a records release to share my tax information to the IRS, which is not very helpful.

[dmertz]

It seems implausible that Principal would have sent you a Form 1099-R that they did not file with the IRS.  How did you determine that Principal did not file the Form 1099-R with the IRS?  Even though they were required to provide you with your copy of the form by January 31, the deadline for them to have e-filed the form with the IRS was March 31, but they could have gotten an automatic extension that extends the e-filing deadline to April 30.

What type of distribution did you receive?

What is the code in box 7 of the Form 1099-R that you received?

Is the IRA/SEP/SIMPLE box marked?

Does the information on the Form 1099-R provided to you by Principal agree with the information shown on 1099-R form printed by TurboTax?

[mywedding55]

I can honestly say I was shocked when I found out. It was determined by contacting the IRS and finding out that the numbers I provided on my tax return did no match what information on line 25b. I then called Principal who then confirmed that they did not file my 1099 and was told they have until 4/30/24 to file but in the same breathe said there is no guarantee it will be sent in on time. It is an early distribution and the box is not checked. And yes, the information I entered in turbo tax matches the 1099r that was provided to me. That was the first thing I checked as soon as the IRS told me the issue.

[dmertz]

If Principal says that they have until 4/30 to file the Form 1099-R, it means that they requested an automatic filing extension that gives them until that date to file.  Since 4/30 had not yet passed at the time that you spoke to the IRS, the fact that they had not yet filed the form with the IRS was not improper.

How is this causing you a problem?  I don't see why there is anything that you should be doing about this yet.

[mywedding55]

• I apologize that I was under the impression that if you supply with a document, you would also file it with the IRS. Hence the statement on the 1099-R. Now, after my tax return has been held for over 13 weeks, I finally was lucky enough to get a tax agent to give me an answer. 

The proper thing to do would be for Principle to say, yes here is your 1099-r but we will not supply your information to the IRS on time and apply for extensions without your knowledge so you can sit there worried something is wrong on your end.

By the way, it is 5/3 and they have confirmed they still have not forwarded the information to the IRS.

If anyone else finds this and has the same situation, the answer is contact your congress person and they will help. Not TAS. Congress person will take your bank statement of deposit, copy of the withdraw from your 401k account and the 1099R to push it along. Problem solved 

[fanfare]

"Problem solved " ??

You must have a very attentive representative.

I asked my  representative for help and it took about five months for a resolution.

It was all handled by a helper  in the local office.

By the way my representative also called in the assistance ot the Taxpayer Advocate.

@mywedding55 

[mywedding55]

 I'm sorry it took so long for yours to help. Unfortunately, I think it comes down to who your representative is and how willing  their office is to put effort in to helping. The TAS person we spoke with told us there was nothing they could do and maybe our congressman could help.