Failed to include Rollover 1099-R info when efiling
After efiling our 2023 Federal tax return last week via TurboTax, I discovered that I had neglected to include information from a 1099-R covering a $70K rollover from my 401k into my TIRA. We used a portion of our refund to purchase a $5K I-bond and will receive a small amount of cash via direct-deposit.
Since there would be no effect on our tax liability, must I file an amended return? If so, should I wait for the refund and I-bond before ammending?
Permalink Submitted by PaulC on Mon, 2024-03-18 15:20
You should not do anything until you see how the IRS processes your tax return. Assuming that the IRS processes your return as if the form 1099-R doesn’t exist, and you receive the expected refund, you should then file an amended return which will result in a zero income change and zero tax change. Filing an amended return should forgo the IRS sending you a letter noting the mismatch between the filed return and the gross 401k distribution income reported on the form 1099-R. That could take months, so dealing with the issue proactively would be what I would do.