Hello,

Looking for direction with a unique situation.

Client presented a 1099R from a financial trust showing $85k gross distribution and $85k taxable with Taxable amount not determined checked and total distribution checked. Box 7 shows K7 (Distribution of IRA no FMV). Also no tax withheld. 

Client said the 1099R is for gold bars he and spouse purchased in 2009 for $65k and they took physical possession of the gold bars in 2011.  They currently have the gold bars in a safe at home. They do not think they ever received a 1099 related to the gold in the past.

Any direction how to proceed with this issue is appreciated.

TIA