Error on 1099-R re TP's state tax residence

[AZ-Tax]

TP is a residence of state that has NO income tax. Deceased family member who resided in AZ died and TP was beneficary on deceased family members IRA. Due to age of TP, TP is taking Req Min Distribution. 1099-R issued to TP still has deceased address in AZ therefore 1099-R has "AZ" as "state/payer". Upon reading the standard language on the 1099-R, I see only the IRS recieving a copy of this 1099-R. No AZ w/h occured within the 1099-R so can I just ignore the AZ on the 1099-R completely OR will I need to file an AZ non residence?

[FEDUKE404]

Not deemed to be AZ income

TP is a residen[t] of state that has NO income tax. Deceased family member who resided in AZ died and TP was beneficary on deceased family members IRA. Due to age of TP, TP is taking Req Min Distribution. 1099-R issued to TP still has deceased address in AZ therefore 1099-R has "AZ" as "state/payer". Upon reading the standard language on the 1099-R, I see only the IRS recieving a copy of this 1099-R. No AZ w/h occured within the 1099-R so can I just ignore the AZ on the 1099-R completely OR will I need to file an AZ non residence?

The residency status of the TP is the determining factor for this type of income. It would appear that NO state income tax is due on anything for the TP.

This is not to say that a Form 1099-R showing "AZ income" would go unnoticed by the AZ tax folks.....you might eventually have to write some response letters, but I see no reason to file an AZ non-resident return given these facts.

If these IRA payments are continuing, I would strongly advise someone to straighten out the name and address of the beneficiary recipient so that the Form 1099-R information is correct.

Useful hint: Remember that when you efile the TP's return, you must report the information as actually shown on the Form 1099-R (meaning entering, likely overriding, to show the "wrong" address!).

FE