Received money from the Receiver who took over the precious metals Depository (First State Depository) - No IRS form given.

[mcathsmith]

In 2021, Robert L. Higgins, owner of First State Depository, where I stored my rolled-over 401k into precious metals.  The CFTC brought charges against Higgins and he was indicted in October 2021.  Kelly Crawford, the Receiver, audited the Depository and found that over 1,000 people had their precious metals STOLEN by Higgins.  I was one of his victims.  In November 2024, the Receiver (Kelly Crawford). mailed me a small distribution check.  I immediately closed my account with New Direction Trust Company, the Custodian, who allegedly knew about Higgins' bad character and dealings.  So, the check was sent to me directly, rather than the Custodian  I am of retirement age, so no penalty would be paid on this small check, but I've not received any tax form regarding this distribution.  I'm not sure how to report it.  The Receiver's letter that came with the check simply stated, "PLEASE BE ADVISED that because your metals were held in an IRA, this check made payable to you, individually, could be treated as a withdrawal from your IRA and subject to tax unless you place the monies in a new IRA."   How do I report this small check from the Receiver?  I'm assuming he doesn't report to the IRS, thus the reason I've not received a 1099?  HOW do I report this?

[SabrinaD2]

Here's how you should likely handle reporting the distribution check:

Determine the Taxable Amount: Since the check was issued from an IRA, it is generally considered a distribution and should be reported as income on a substitute 1099-R.

Here's how you can report your IRA distributions in TurboTax and create a substitute 1099-R:

1. Log in to TurboTax: Be sure you are logged for the link in step 2.
2. Go to 1099-R.
3. Enter Manually: On the "Let's import your tax info" screen, select "Change how I enter my form" and then choose "Type it in myself".
4. Indicate Form Type: Indicate the type of form you were expecting to receive (e.g., 1099-R IRA, pension, etc.).
5. Complete Form 1099-R: Enter the details as if you actually received the correct form. Include as much information about the payer as you can, such as name, address, and the amounts for 2024.
6. Substitute 1099-R: Continue until you reach the question "Do any of these situations apply to you?" and check "I need to complete a substitute 1099-R".
7. Provide Details: Enter the details of your distribution as accurately as possible. Use the information from the check and the letter you received from the Receiver.

For more information on reporting IRA distributions, you can refer to the IRS guidelines on IRA distributions and reporting IRA transactions.