A form 1099-R was sent to a relative in the amount of 160.00 showing "Total Distribution" and "....report this as Income to IRS..."
The problem is, this amount was rolled over to an IRA account by the custodian, no money was ever received by the individual, the form is clearly in error and the custodian itself is non-responsive.
The person has also already completed and filed electronically their 2008 taxes so apart from asking the sender of the incorrect 1099-R to resubmit it, what else should be done? If the custodian of the 160.00 decides to ignore requests to correct the form, is this a reason to write to the IRS and submit pre-emptively evidence that the amount was rolled over directly between two custodian entities and no funds were ever handled by the taxpayer?
Anything else?
========================================= MODERATOR'S COMMENT: If this was a direct transfer from the 401k plan administrator to the IRA custodian, the Taxable Amount box should be zero or blank, and box 7 should be code "G" and, if so, it was reported correctly.
The box 1 amount goes on form 1040 line 16a and is not added to line 16b.