Hello

My client had intended on transferring an IRA distribution from trustee to trustee.  However, this did not happen.  Rather, a check was issued to the client, with the 20% mandatory tax withholding, and then subsequently turned the check over to the new trustee within the 60-day period.

My question involves reporting the transaction on the 1040.  I know that the taxes withheld (20%) are reported as taxable income.  How do I do this?  Do I change the taxable amount on the 1099?  I did see at the bottom of the 1099-R input page that there is a section to indicate the taxable amount.

Any direction would be appreciated.

Thank you