Question

The IRS sent a letter asking me to pay taxes on a rollover that was filed correctly because the received they a 1099-R. The 1099-R shows that it was a rollover. Help?

Forum|Forum|7 years ago
June 4, 2019
9 replies
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TurboTax Deluxe Online

Employee

First did you enter the 1099-R in the program AND complete the follow up screens to indicate the rollover ? Do you see the rollover listed on the tax return line 15 or 16 ? What was the code in box 7 of the 1099-R ? Was it a trustee to trustee direct rollover ?

V

vjh1938

YES, I ENTERED THE AMOUNT FROM THE 19099R

VolvoGirl

Employee

Was it a direct trustee to trustee transfer or did you get a check? Did they take any withholding out of it?

Carl11_2

Employee

Did you roll from a traditional retirement account, to a ROTH retirement vehicle?

C

cryochildAuthor

Line 15 and 16 are blank. Line 1 and 1a have the same amount in them. Line 2 has 0. The code is G. I got a check that I signed and then sent back to them. This is all with Fidelity and I was assured when I did this there would be no taxes since it was a direct rollover. Also, no withholdings for the same reason. I believe this was from an IRA to a 401k, but it could have been 401k to 401k. My memory is a little fuzzy on that. It was a rollover from my employer account, to the new company that my employer merged with.

VolvoGirl

Employee

It should be on line 16a and the word Rollover on line 16. Did you enter the 1099R into Turbo Tax?

C

cryochildAuthor

yes. It shows rollover on 15B on the first page of the 1040.

VolvoGirl

Employee

Awwww, it probably belongs on line 16 so the IRS missed it. Just tell them it’s on line 15. On your 1099R there is a little IRA box between boxes 7&8. Is that checked? That tells it which line to go on.

macuser_22

Employee

The IRS has been sending many letters for 401(k) rollovers since the receiving 401(k) custodian does not report that they received the rollover. Usually what the IRS wants is some conformation (401(k) statement, etc) that shows the deposit in order to proof that the rollover actually took place and you did not just pocket the money. Call the number on the letter for more information as to just what the IRS wants.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Critter

Employee

Agreed ... call the number on the notice and let them know you reported the form on the wrong line and that should do it.

macuser_22

Employee

We don't know if it was the wrong line or not since the OP said that it might have been a IRA to 401(k) rollover, but that depends if the IRA/SEP/SIMPLE box was checked or not that we do not know.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**