C-Corp paid out distributions in principal due to insufficient earning to IRA

[AZ-Tax]

C-Corp paid out distributions/divs in principal due to insufficient earning, to IRA. Since its an IRA, the account holder is not issued a 1099-Div. So how is this handled for the TP once the TP start taking IRA distributions? I this case Fidelity is the custodian. Does Fidelity report in Box 5 of form 1099-R the amount of principal returned to the TP?

http://finance.yahoo.com/news/arlington-asset-investment-corp-amends-215200915.html

[TAXNJ]

Sounds like

C-Corp paid out distributions/divs in principal due to insufficient earning, to IRA. Since its an IRA, the account holder is not issued a 1099-Div. So how is this handled for the TP once the TP start taking IRA distributions? I this case Fidelity is the custodian. Does Fidelity report in Box 5 of form 1099-R the amount of principal returned to the TP?

http://finance.yahoo.com/news/arling...215200915.html

think Fidelity should be able to classify the 1099-R prpoerly. Fidelity is working with the investment company since the company made a determination as per excerpt from article you referenced"

In preparing its federal income tax returns for 2014, the Company has now determined that it did not have current or accumulated earnings and profits for the year ended December 31, 2014, and therefore all of the Company's distributions to shareholders in 2014 should have been reported as returns of capital instead of qualified dividends.


Also, as the article states, The Company recommends that shareholders consult with their tax advisor to determine their specific reduction in tax liability from this change.

Would think that both Fidelity and the investment company will provide information to the shareholders and then have the person contact their tax advisor

[Snaggletooth]

What is going on?

At the risk of being insulting, who is the client? The corp? The IRA itself (probably not, since most of these have custodians) The owner?

I think there is a flow of money from some party to another, but not sure there is a question, or likely I simply don't understand it. I do gather there is an IRA involved somewhere...