Form 2439

[Lion]

Client just received Form 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains with the shareholder's name listed as

John Doe Trad IRA VFTC (Vanguard) as Custodian

but using John Doe's SS#.

I would've thought this pertains to his IRA and not go on his personal return with the title to his Trad IRA, but with his SS#.... Now what? The instructions say

Attach to the shareholder's income tax returns for the tax year that includes the last day of the IRC's or REIT's tax year.

Again, the shareholder is the Trad IRA, but the ID# is my client's SS#.

Details include amounts listed for Total undistributed LT capital gains, Unrecaptured section 1250 gain, and Tax paid by the RIC or REIT on the gains.

I did ask my client to contact Vanguard, but promised him I'd look into it. I don't know where to start. If the IRS matches his SS#, then they expect this to appear someplace on his personal return. Any leads?

[BP.]

Instructions also say

I did ask my client to contact Vanguard, but promised him I'd look into it. I don't know where to start. If the IRS matches his SS#, then they expect this to appear someplace on his personal return. Any leads?

http://www.irs.gov/pub/irs-prior/f2439--2010.pdf

If a shareholder is an IRA, enter the identification number of the IRA trust. Do not enter the SSN of the person for whom the IRA is maintained.

Maybe need a corrected form?

[Lion]

Thank you. I've not pulled instructions from the IRS, as my computer has been freezing lately when trying to get a .pdf from the IRS site. (Not sure what's going on, but I've been trying other locations whenever I can find them until I have time to get my techie over here.) I'm glad the instructions are logical enough to say to match the name of the IRA with the IRA's ID#. And, I will get the instructions from that site somehow.

So, for now, I will not include it on my client's return and have him request a corrected form from Vanguard in hopes of receiving it by the time he receives any IRS letter. It's a small amount reported, and there were taxes paid, so I don't think it could make much of a tax difference. Again, thank you for the link.