CP 2000/Income on File @ IRS

[Kurly]

Taxpayer received a CP 2000.

IRS wants to tax $12000. They have a 1099R from the FDIC. The taxpayer does not have any records having received the 1099R.

Taxpayer had a Roth IRA at a bank that was closed by the FDIC. The Roth IRA was transferred to another bank authorized by the FDIC as a Roth IRA. Shouldn't this keep the same item as before the transfer, therefore not a taxable event? The two banks show the year end statement as a Roth IRA with a balance (Form 5498). First bank a 2009 year end balance of $12,xxx and the new bank a 2010 year end balance of $12,xxx.The transfer took place on 1/22/2010.

Thanks

Kurly

[Koss]

Form 1099-R

Sounds like the FDIC coded the 1099-R incorrectly.

Either the form should not have been issued at all, or it should have been coded as a trustee-to-trustee rollover.

What code appears on the 1099-R?

BMK

[taxea]

Or perhaps client did get the 1099 and forgot. If it wasn't reported on the return the IRS will issue a CP2000. If nothing else the client should have records that show the transfer.

[Jiggers]

Postings on another webboard are indicating that the IRS is not picking up the code that shows this as a Roth transfer or a transfer to another qualified plan.

You will probably have to send a copy of the 1099R showing the code to get this resolved.