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1099R - "Total Distribution" checked erroneously.

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Level 2
last updated ‎March 03, 2020 3:48 PM

We have a number of clients who are being given 1099R's that have the Line 2b Total Distribution box checked, when in fact they did not receive a "Total Distribution".

Is this something that would require an amendment if a "Corrected" 1099R were given?

Should we just report it without that box checked to begin with? - Maybe add an "Explanation".

The bottom line does not change either way, the main concern is not wanting to have to do amendments, and or not having returns rejected for differing information.

Please help!

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Highlighted
Level 2
last updated ‎March 03, 2020 3:48 PM

That would make sense, but that's the scary part - it makes sense. I suppose that in reality, if we report it as a total liquidation this year, as they are being reported to the IRS, then next year we would just be starting over with a new reporting.

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Level 15
Level 15
last updated ‎March 03, 2020 3:48 PM

If the figures dont change, then no amended return would need to be prepared. 

The only thing I see in the program when we mark the total dist box is that 1099R no longer transfers over to the next year (since it should be gone if the entire thing was distributed).


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Highlighted
Level 2
last updated ‎March 03, 2020 3:48 PM

That would make sense, but that's the scary part - it makes sense. I suppose that in reality, if we report it as a total liquidation this year, as they are being reported to the IRS, then next year we would just be starting over with a new reporting.

View solution in original post

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Level 15
Level 15
last updated ‎March 03, 2020 3:48 PM

Maybe its got a different account number now or something.  Clicking that box doesnt change anything on the tax return.

Just enter the 1099R as shown, maybe next year they have a distribution from the same bank but a different acct number or maybe they dont take anything out next year.

If youre worried, ask for the bank statement showing the money that came out....you'll be able to see if the acct is a zero balance or not.

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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