1099R WRONG. How to adjust on filing for extension?

[EmileS]

Received a 1099R from Fidelity Investments due to fraudulent approx $50,000 withdrawal from IRA account. Working with Fidelity to get this money "back," and sofar have recovered about 60%.  Money is currently in a Fidelity cash account and have been advised by Fidelity that they will transfer it back to the IRA account and issue an adjusted 1099R. However, this will not happen for several months - so; trying to file an extension.

But; if I enter the "wrong" 1099R I will have to pay thousands in taxes with my extension :(  (Of course fraudster only took the minimum tax distribution route.)  If I do NOT report this 1099R I am sure the IRS will send me a notice. Could I adjust the amounts in filing this 1099R to the amounts I believe are correct - thereby avoiding having to pay for my extension?

Sincerely appreciate any input.

Thanks, Emile 

[MinhT1]

If you expect that the problem will be resolved and that Fidelity will issue a corrected form 1099-R by the end of the extension period, you can exclude the "fraudulent" 1099-R from your tax return and not pay tax on it on tax day, April 18.

[EmileS]

MinHt1:

AWESOME; thank you very much! Haha; will delete this 1099R 🙂 saving me about $3K in "unnecessary" taxes on April 18th.

Add-on question ... I stated $50K was stolen, but I also personally took out $5000 from this IRA with taxes withheld. Do I make up my own 1099R or just forget it and wait till Fidelity issues a corrected one?

Many thanks, Emile

[Vanessa A]

You will need to include the $5,000 that you actually took with your extension payment.  You can "make one up" by clicking on the " I need to prepare a substitute 1099-R" box in the 1099-R section of TurboTax when it asks which form you have.  Since you do not actually submit the return when you file the extension, you will not need to add in form 4852.  Hopefully, by the time you file your return with extension, you will have all the forms you need. 

[EmileS]

Vanessa A,

THANK YOU VERY MUCH. Awesome! OK; will "make up" my own 1099R for the additional (small) IRA disbursement 🙂

Thanks again, Emile