"The money was distributed and reported on a 1099r."

Form 1099-R is from the issuer for money Out. They don't know what happened to the funds, if something was done that involved the money In, somewhere else.

However, it appears your taxpayer accepted the funds. Unless she can prove he had Basis in that account, this is reported as ordinary taxable income. When the funds were distributed, was there withholding? Do you see gross vs net?