Senior t/p is suppose to receive a check from her IRA account and has for years with no problem. She recently was moved to an assisted living, and the IRA administrator mailed the check to her there. Unfortunately no one found the check that was issued in October 2005 (issued annually for approx $1000) until March 2006. At that point it became stale dated and had to be returned to the IRA Administrator for reissue.
They advised the daughter that there would not be a 1099R issued for 2005, as the check was never cashed in 2005. That it would be on a 1099R for 2006. This seems odd to me, but I have no 1099R for 2005.
So now the question, since there is no 1099R form issued for 2005, is the taxpayer in the 50% penalty for not receiving the RMD. It could be argued maybe that she is not of the mind to know that she received the check (which she isn't) The IRA Administrator did issue the check, it just wasn't cashed.
could I report the amount without a 1099R form on 2005 and then try and take a credit for it on the 2006 if they issue a 1099R form for both 2005 and 2006 in 2006.
Sandy
They advised the daughter that there would not be a 1099R issued for 2005, as the check was never cashed in 2005. That it would be on a 1099R for 2006. This seems odd to me, but I have no 1099R for 2005.
So now the question, since there is no 1099R form issued for 2005, is the taxpayer in the 50% penalty for not receiving the RMD. It could be argued maybe that she is not of the mind to know that she received the check (which she isn't) The IRA Administrator did issue the check, it just wasn't cashed.
could I report the amount without a 1099R form on 2005 and then try and take a credit for it on the 2006 if they issue a 1099R form for both 2005 and 2006 in 2006.
Sandy
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