1099-R box 2a blank and 2b not checked

[r0jkumar]

HI,

I recently received a 1099-R after I had already filed by taxes. Following are the details on this 1099-R :

1. Box 1 has a gross distribution amount
2. Box 2a has been left BLANK.
3. Box 2b is NOT checked.
4. There is an amount in box 5 that is about 10% less than the gross distribution amount in Box 1. 
5. The distribution code in box 7 is BG.
   
   This was a  rollover from my previous employer's ROTH 401K to my current employer's  ROTH  401K account. Should I have reported this in my tax return? Was any portion of this distribution taxable?

[MarilynG1]

Yes, you should enter any 1099-R you receive into TurboTax (the IRS has copies).

Wait until you receive your Refund, then save a  copy of your filed return to your computer.

Open TurboTax, go to Other Tax Situations, and scroll down to Other Tax Forms > Amend a Return and enter your 1099-R in the Retirement topic under Wages & Income. 

Based on what you reported, this may not be taxable.  If after completing the amendment process, your Refund/Amount Due has not changed, you don't need to file your Amendment.  Just keep your 1099-R for documentation.  

Read Do I Need to Amend? for more info. 

[dmertz]

Some payers think that a blank entry is the same as a zero entry, but in box 2a is not.  This is one such payer who mistakenly omitted the zero from box 2a.  A Form 1099-R with codes B and G in box 7 is never taxable.

Even though the payer mistakenly left box 2a blank (an improper way to indicate that the rollover is nontaxable), TurboTax knows to treat as nontaxable a distribution reported on Form 1099-R with codes B and G in box 7.

[r0jkumar]

My tax refund has been pending since Feb 4th which is when my  Federal return was accepted. So I called IRS customer service yesterday and spoke to someone. It turns out my tax filing was flagged by the automated system and has been sent to the IRS errors and resolutions department. It was sent there about 2 weeks ago. What is the best and the worst possible outcome now? Like I mentioned above and you experts have noted, all of  my 1099-Rs were essentially rollovers from previous employer's Roth and traditional 401K to the current employer's Roth and traditional 401K accounts respectively. I do not think my tax refund amount changes as a result of  any of this.

[dmertz]

The IRS Automated UnderReporter system likely would have flagged your tax return if you failed to include these Forms 1099-R when preparing your tax return.  However, with all of the rollovers being nontaxable, there should be no change in your tax liability.  The IRS might ask you to provide an explanation to substantiate that these nontaxable rollovers were completed properly.

[r0jkumar]

My fed tax refund was approved last weekend and the refund was deposited into my account on Thursday morning. I never received a CP2000 notice or any other letter of any form from IRS. I guess they realized the 1099-Rs that I missed in my tax filing had no material impact on the refund amount.

[dmertz]

The electronic filing deadline for 2022 Forms 1099-R is March 31, 2023, so the IRS does not run the UAR system until later in the year when it could flag your tax return for examination.

[r0jkumar]

My return was flagged soon after it was accepted which was Feb 4th and was sent to the errors and correction department. IRS customer service told me this.