Hi, you kind of have a catch-22 there ... From the Estate's perspective, you're probably fine, as the reporting from the Q-Plan is 2011 reporting, and you're showing a deduction on the 2011 return ... BUT the K-1s are dated 2012 (and will be reported by the bene's on their 2012 return?
There's always going to be a mis-match there
K-1s should be dated the same as the return where distributed
do you possibly have an overlap of tax years?
estate having something other than a calendar tax year? that could do it
This is actually amended return. The K-1 will also have to be dated 2011. Also, beneficiary will have to report the amount on her 1040 for that year as well
Ahhh, YES, then you're fine ... if it's distributed , it's definitely a deduction
I'm just not sure if I can take the distribution deduction, since the distribution actually occurred in 2012
no you must treat it as a 2011 distribution ... for all the reasons you just mentioned
Is there any IRS Reg. that would support this opinion?
that's the ONLY way you won't get a kick-out from the IRS system somewhere
What would be the reason they would kick out my amended return?
I don't thing you'll find a procedure ot notice or treasury reg for something with this SPECIFIC situation ... there might be a PLR (Private Letter Ruling somewhere) ...oint but this is really fairly straightforward ... from a procedural (tax ADMINISTRATION) standpoint ... you have...
a 2011 1041 distributing on a 2011 k1 and a taxpayer beneficiary that will report this as 2011 income
AND a 1099-R from a qualified plan date 2011 as well
thats the only choice you have
Yes, the 1099R is dated for 2011
you really have no choice 2011 distribution from a qualified plan, that has to be reported on a 2011 1041 and deducted on that 2011 1041 with coinciding k-1s (dated 2011 of course) with taxpayer beneficiaries reporting on their 2011 return
that's how you'd get this right
Do I have to amend the beneficiaries 1040 exactly the same time, or can I amend it with a slight a delay? I need to get a refund from 1041 first, before I pay it on my 1040
As long as you're under the three year statue of limitations for refund purposes your fine .. you can go back as far as needed (but for refund purposes, there is a three year statute)
Is there anything else that I should be aware in my situation?
I think you have your arms around it... again what youre really trying to do here is having everything match up in the system ... from a tax law standpoint you really have to do it this way .. and the IRS matching program is going to look to match K-1s, 1099's, 1041's, 1040's etc all by tax year and tax ID ... You're there..
Thank you so much for your help!
You're very welcome
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