Institution issues 2011 1099-R for 2012 distribution
Hadn’t seen this before, so odd I was wondering if it’s more commonplace than I realized
Taxpayer failed to recieve 2011 RMD primarily due to advisor error
“Late” distribution of missed RMD made in March 2012
We intended to report distributiuon on 2012 tax return with request for reasonable cause request for abatement of penalty
Incredibly institution issued a 2011 1099-R incorrectly (improperly?) showing the distribution as having been made in 2011
I thnk they were dead wrong but wonder if others have also seen this form of “correction”
Thanks
Permalink Submitted by Alan Spross on Sun, 2012-04-29 00:32
I think this is fairly rare, and would likely happen only if the institution was considered fully responsible for the omission.
Is the advisor independent of the IRA custodian?
Had the institution been notified to distribute the RMD in plenty of time?
Was the 1099R for 2011 issued by late January, or did it come out later?
Was the income reported on the 2011 return to conform to the 1099R?
Permalink Submitted by Anonymous (not verified) on Sun, 2012-04-29 21:50
Definitiely rare becasue IMHO it’s wrong, if not downright illegal
How can they legally report a distribution that didn’t happen just to cover their backsides?
Alan,to answer your quesitons the issue came up during preparation of the taxpayers 2011 tax returns, the advisor/institution were contacted, they made the distribution and issued the 2011 1099-R in March 2012, taxpayer reported the income on their 2011 tax returns
I guess there’s a first time for everything
Thanks
Permalink Submitted by Jose Morales on Mon, 2012-04-30 16:01
I see this a lot from banks that don’t really invest much in the way of IRA training for their designated “IRA Group.” The truth is that even at the too big to fail banks, they don’t invest a whole lot in the way of any IRA training beyond the basics. The only way anyone would know about more advanced beneficiary and tax reporting issues is by taking the initiative themselves to learn. Also, every year leading up to the tax filing deadline I will get demands from tax preparers or CPAs to issue a 1099-R for the prior year when their clients forget to take their distributions in a timely manner.