Hey there Community,
I'm sending out this explanation in the hopes that someone can give me some guidance about how to proceed with my situation.
I have a non qualified annuity which began paying out in 2025 and now it is time to submit the details so that the payments are taxed properly. This annuity was first purchased under a single payment back in 2001 and was subsequently transferred to another annuity product and company using a 1031 Exchange back in 2013. The new company apparently did not have the basis information and has issued a 1099-R that shows the entire amount that was paid out in 2025 is taxable. I have a document from the previous company that shows the initial amount that was paid into the annuity, hence the basis.
At first I attempted to contact the company that issued the 1099-R and explained all of the first paragraph, yet they insist that since they never received the basis they have to assume the entire amount is taxable. Next I submitted my own historical document that shows the initial amount of the annuity to the same company but they won't accept the document as the basis. I asked them to simply leave Block 2A blank and check Block 2b on the 1099-R to show that they did not calculate the amount that was taxed but they refuse to make the changes.
The problem is the original company was sold to another company back in the 2014 timeframe and there is no one to contact to get an official document for the basis.
So the question is can I submit the taxable amount that I have calculated based on the basis by using the IRS Pub 939 for non qualified annuity and include an explanation stating that the 1099-R is in error or should I do something else?
I appreciate any constructive wisdom to solve the problem. Its clear that I won't be able to convince the annuity holder to change the 1099-R.
