Amending for Recharacterized Roth

[AZ-Tax]

New client.* TP told his previous tax prep on April 5, 2016 (relating to 2015 TY), his RIA recharacterized $14K of his Roth back into*TP's traditional IRA*on April 1st, 2016 and the tax prep never made the change.* TP received a 1099-R for TY 2015 for this $14K with code 7. TP wants to know if TP can amend his 2015 TY return changing the code 7 to R on this above 1099-R w/o actually having a corrected 1099-R?

[FEDUKE404]

Changing tax document

Ah, I don't really think you can "change" something on an existing tax document such as a Form 1099-R.

( Your tax software should have areas, on the Form 1099-R data entry page, to make the additional modifications relevant to your client. )

Your client needs to determine what will be shown on a *SEPARATE* Form 1099-R which he should receive as a result of the 2016 recharacterization.

Depending on the circumstances and the timing, don't eliminate the possibility of there being some type of taxable event that occurred.

You might also want to be looking around for a current Form 5498 ??

FE

[Kram BergGold]

What I Have Done

First, To be honest I don't really follow your scenario. What I think I understand is what the client is telling you is not in concert with the 1099-R. The only solution is to do a three way call with the client and the investment company or get the client to give you authorization to speak with the company. Here was my scenario. I told client to re-characterize a Traditional to Roth before Oct 15. He went to the investment company on Oct 15 and they processed the transaction on Oct 18. So the 1099-R did not show it as a re-characterization but as a withdrawal. The client kept telling me he did what I told him to but when I finally spoke with the investment company I found out that he only thought he did what I told him to do. You have to go to the horse's mouth.

[Rapid Robert]

Your client needs to determine what will be shown on a *SEPARATE* Form 1099-R which he should receive as a result of the 2016 recharacterization

Which will be a 2016 Form 1099-R, since the transaction happened in 2016. See codes N and R used on Form 1099-R.

Instructions for Form 8606 include details on how to report recharacterizations.