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I need help filing a 2013 amendment to include a 1099-R

I need help filing...

I need help filing a 2013 amendment to include a 1099-R income and a compensating loss. That part is fine but the executor reported the wrong stock value which created in incorrect 1099-R. So I ended up with what looks like a large income that I need to report. However, in ther previous year the company significantly lowered the stock value and then went out of business and was dissolved. The stock was never sold but it's worthless so I have a loss that I need to report that cancels the income shown on the 1099-R.

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Answered in 14 minutes by:
3/25/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,647
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi. …. My name’s Lane,

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

I’m reading your question now.

Bear with me a moment while I type up my response.

….

Then if you have further questions we can go from there.

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If the investment was worthless on the date of distribution, then your IRA custodian violated the tax law by misreporting their value on the Form 1099-R. This is not about a loss (a loss in an IRA is a non-event) but rather about how accurately the custodian reported the fair market value of what was distributed - a subtle but critically important distinction.

...

However, the IRA custodian is highly unlikely to issue a corrected 1099-R, even if you were to provide irrefutable proof of their error. In my experience they do this because a corrected 1099-R may be viewed as an admission of wrongdoing by them in the first place.

...

That doesn't mean, however, that you shouldn't attempt to get them to issue a corrected 1099-R if you have the proof described. In fact IRS has a process or this ... bear with me a sec while I pull up the regs on this.

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Customer reply replied 3 months ago
Ok

See this from IRS:

...

"Topic Number 154 - Form W-2 and Form 1099-R (What to Do if Incorrect or Not Received)

...

If your Form W-2.pdf, Wage and Tax Statement, and/or Form 1099-R.pdf, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., aren't available to you by January 31, 2018, or if your information is incorrect on these forms, contact your employer/payer. If by the end of February you still haven't received the missing or corrected form, you may call the IRS at(###) ###-####for assistance (see Telephone and Local Assistance for hours of operation).

...

When you call, please have the following information available:

  • Your name, address (including ZIP code), phone number, and social security number,
  • Your employer/payer's name, address (including ZIP code), and phone number,
  • If known, your employer/payer's identification number (EIN).

...

The IRS will contact the employer/payer for you and request the missing or corrected form. The IRS will also send you a Form 4852.pdf, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., along with a letter containing instructions for you.

...

If you don't receive the missing or corrected form in sufficient time to file your tax return, you may use Form 4852 to complete your return. You'll estimate your wages or payments made to you and taxes withheld on Form 4852."

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Customer reply replied 3 months ago
Got it, thanks!

You’re very welcome... Your positive rating … (by using those the stars on your screen, and then clicking “submit”) …is thanks enough.

Otherwise I receive no compensation for the work here.

...

Thank you!

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,647
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
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