1. Home
  2. Taxes General Forum
  3. Uncashed check

Uncashed check

My wife inherited an IRA, from her deceased mother. Every year, we receve the IRS minumum distribution, via check. We just learned that the 2012 $1200 check was never cashed. It will soon be reissued.

In 2012, we did receive a 1099, and declared that income on our returns (even though we never cashed that check). How do we now resolve our IRS and CT state taxes? Might we need to request a revised 2012 1099, showing $0 income; then file 1040-x's, for Tax Years 2012 and '13.

Would an option be to just wait forthe IRS to challenge our 2012 return, noting that we did not take the required/ miniimum distribution. Then we could comply with the IRS's suggested resolution?

Thanks for any/ all suggestions ...dave

Reply to
Dave C
Loading thread data ...

To the contrary, your facts indicate that you did receive the check, you just didn't cash it. If so, it would be a part of your RMD for 2012 when you reported it. Just make sure the IRA custodian does not include it again on a 2014 Form 1099-R. I don't see any need for amended returns.

Reply to
brianwallen

I don't know the rule with respect to an IRS RMD, but it sounds right to me. In the normal tax situation you are considered to have received money when you could have gotten it. Since you received a check in 2012 and could have cashed it in that year, you are taxed as if you received it then even if you delayed cashing the check.

Reply to
Stuart A. Bronstein

Thanks to both responders !! You provided me with most imformative (prompt) replies to my inquiry. Best of all, you informed me to a MUCH simpler resolution - than I had anticiapted.

THX

Reply to
Dave C

There is nothing to resolve with the IRS or CT unless the IRA custodian erroneously includes the $1,200 on your 1099 for tax year 2014. You had access to the money in 2012 (whether you cashed the check or not) and properly included it on your 2012 tax returns.

Bill

Reply to
Bill Brown

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.