Missing 1099R

[Questionguy101]

Client withdrew fund from one IRA account and deposited it into another IRA account within 60 days in 2010. But he has lost the Form 1099R sent to him by his former IRA custodian. I think box 7 on that Form 1099-R has been noted as "normal distribution" because the former IRA custodian wouldn't know whether he has rollovered the fund or not.

I use Drake and usually I need to enter all the information of a Form 1099-R to the program, including the federal ID number, name address of the custodian and other information. But since the client cannot provide me with the Form 1099-R now, I plan to just enter the rollover amount on line 16a and leave 16b blank.

My question if that if I do not enter the information of the former IRA custodian who issued the Form 1099-R, will my client receive a CP-2000 later even though I have entered the rollover amount on line 16a?

[KBTS]

Why not put the responsibility for this back on your client (where it belongs). Have them contact the custodian and explain they lost the form and need a replacement. You do not want to "guess" there was a code 7 and make up the information. If the client later gets a letter from the IRS, you are going to get all the blame. Tell them you cannot accurately complete the return without the 1099-R and offer to put them on extension if they feel they cannot get the form in time.

[AJsTax]

a form 5329

should be included with the total amount entered and the exclusion reason to prove an indirect rollover.
It would only take one day to get a replacement 1099-r if you are not sure of the code in box 7.

[KBTS]

You are correct that it only takes the client a phone call to get the form from the custodian - but getting the form from the client...that can be a different story : )

[JohnH]

In some situations like this, it boils down to who determines your office procedures - you or the client? I often have lots of people on extension by Apr 15 because they can't bother to get missing info to me. Bottom line is that it is their responsibility to get missing info when it's critical to the return.

[luke]

Amen

client HAS to take some responsibility......

[ChEAr$]

I used to think when first efiling back in 1989 I had to enter every last figure on a W2 and/or 1099R, even to the extent that the return would be rejECTED! And not because of gray hair, either.

But in this case I would just enter the figures without entering on any 1099R worksheet or "screen" as Drake calls it.
Then if reJECTED, demand the form.

More than one way to skin a cat.

[Burke]

You do not have to enter all that information if you do a paper return. So, tell the client in the absence of the form, that is what you have to do, and he can wait for his refund. That still does not tell you what the distribution code was or if any taxes were withheld.

[FEDUKE404]

Somewhat disagree

You do not have to enter all that information if you do a paper return. So, tell the client in the absence of the form, that is what you have to do, and he can wait for his refund. That still does not tell you what the distribution code was or if any taxes were withheld.

While I understand your point that you could perhaps "get by" using a paper return with a lot less information than is needed for efiling, I personally would not go that route.

There is too much at stake. including my own backside - clients do not always have the best memory.

Also, how would you handle any withholding that might have occurred? What about if the person rolled over only the net (after taxes) and not the gross distribution?

Yup - no way I go there without the Form 1099-R. The problem is clearly that of the client and zero my own.

FE