tomead64
Level 2

I have a situation I have never encountered before.  A client inherited an IRA that was split into 2 beneficiary IRAs by the custodian.  It was then transferred directly to Edward Jones into another beneficiary IRA.  The client received a 1099-R with "4" in box 7 and not "4G" which resulted in box 2A being for a taxable amount of the entire value instead of 0.  Both the transferring and receiving custodians are of little help to the client but I have enough paperwork from both to clearly show a direct rollover.  Should I have this client wait for a resolution and corrected 1099-R (if he gets one) or should I do a1040 showing the income and then a 1040-X with the correction and an explanation with all of the documentation attached?

 

Thanks in Advance!

 

 

 

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