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New Member
posted Jun 4, 2019 4:39:19 PM

The IRS sent a letter asking me to pay taxes on a rollover that was filed correctly because the received they a 1099-R. The 1099-R shows that it was a rollover. Help?

0 16 2208
16 Replies
Level 15
Jun 4, 2019 4:39:21 PM

First did you enter the 1099-R in the program AND complete the follow up screens to indicate the rollover ?   Do you see the rollover listed on the tax return line 15 or 16 ?  What was the code in box 7 of the 1099-R ?   Was it a trustee to trustee direct rollover ?  

Level 15
Jun 4, 2019 4:39:22 PM

Was it a direct trustee to trustee transfer or did you get a check?  Did they take any withholding out of it?

Level 15
Jun 4, 2019 4:39:23 PM

Did you roll from a traditional retirement account, to a ROTH retirement vehicle?

New Member
Jun 4, 2019 4:39:25 PM

Line 15 and 16 are blank. Line 1 and 1a have the same amount in them. Line 2 has 0.  The code is G.  I got a check that I signed and then sent back to them.  This is all with Fidelity and I was assured when I did this there would be no taxes since it was a direct rollover. Also, no withholdings for the same reason.  I believe this was from an IRA to a 401k, but it could have been 401k to 401k.  My memory is a little fuzzy on that.  It was a rollover from my employer account, to the new company that my employer merged with.

Level 15
Jun 4, 2019 4:39:26 PM

It should be on line 16a and the word Rollover on line 16.  Did you enter the 1099R into Turbo Tax?

New Member
Jun 4, 2019 4:39:27 PM

yes.  It shows rollover on 15B  on the first page of the 1040.

Level 15
Jun 4, 2019 4:39:29 PM

Awwww,  it probably belongs on line 16 so the IRS missed it.  Just tell them it’s on line 15.  On your 1099R there is a little IRA box between boxes 7&8.  Is that checked?  That tells it which line to go on.

Level 15
Jun 4, 2019 4:39:30 PM

The IRS has been sending many letters for 401(k) rollovers since the receiving 401(k) custodian does not report that they received the rollover.  Usually what the IRS wants is some conformation (401(k) statement, etc) that shows the deposit in order to proof that the rollover actually took place and you did not just pocket the money.  Call the number on the letter for more information as to just what the IRS wants.

Level 15
Jun 4, 2019 4:39:31 PM

Agreed ... call the number on the notice and let them know you reported the form on the wrong line and that should do it. 

Level 15
Jun 4, 2019 4:39:33 PM

We don't know if it was the wrong line or not since the OP said that it might have been a IRA to 401(k) rollover, but that depends if the IRA/SEP/SIMPLE box was checked or not that we do not know.

Level 15
Jun 4, 2019 4:39:34 PM

But he did say from his employer plan to the new employer.

New Member
Jun 4, 2019 4:39:36 PM

That box was checked on the 1099-R. What’s weird is on my 1040, 15 is the line for IRA and 16 is for pensions. Is my the form wrong? You keep referencing 16.

Level 15
Jun 4, 2019 4:39:37 PM

Short answer ... if you did report the rollover on the return then just call the IRS and tell them what line it is on.  If it was an employer to employer retirement 401K plan then the roll should be on line 16.   If this was an IRA to IRA roll then it should be on line 15.  

Level 15
Jun 4, 2019 4:39:38 PM

Code G in box 7 with the IRA/SEP/SIMPLE box marked indicates an IRA to 401(k) direct rollover.  This suggests that the account at your former employer was a SEP-IRA account or a SIMPLE IRA account; SEP and SIMPLE IRA plans are types of IRA-based employer plans.

A Form 1099-R with code G and the IRA/SEP/SIMPLE box marked should result in the box 1 amount being included on Form 1040 line 15a and excluded from line 15b.  Even if this is what your Form 1040 shows, because IRA to 401(k) rollovers are less common than other rollovers, the IRS is asking for proof that the rollover was completed since 401(k) plans do not report receipt of rollovers.  The proof would be in the form of an account statement or transaction statement from your 401(k) plan showing receipt of the rollover.

New Member
Mar 26, 2021 10:40:37 AM

YES, I ENTERED THE AMOUNT FROM THE 19099R

New Member
Mar 26, 2021 10:42:56 AM

I DID NOT SEE OTHER SCREENS TO ENTER THAT IT WAS A DIRECT ROLLOVER.  IT WAS A DIRECT ROLLOVER.  I DID GET A CHECK MADE DIRECTLY TO FIDELITY FOR THE ROLLOVER