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Level 1
posted Nov 16, 2022 9:16:53 AM

1099-R

My wife inherited an IRA from her deceased father in 2021. We opened an Inherited IRA account and had the funds transferred directly into that account. When we received our 1099-R form, it was coded as if we had received the money as a direct distribution with no taxes withheld. Consequently, our AGI and taxable income were grossly overstated, and we were on the hook for $20K in taxes. Repeated attempts to get a corrected 1099-R from the issuing company have been ignored, as well as repeated attempts to contact the IRS at an 800 number, which culminate in automated messages to call back another time. How do we get this corrected?

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1 Replies
Employee Tax Expert
Nov 16, 2022 10:56:36 AM

It appears the IRA was not registered or titled in your spouse's name. The financial institution of the account would need to register the account that way. You will need to determine if the paperwork you submitted to them was reflected of your intentions. They would need to make the change on the account.