What @TaxGuyBill said, " My concern is you said receipts for Basis in the investment.  That is different than Basis in the IRA.  My impression of code "K" means it is probably a self-directed IRA and they don't really know what should be in Box 1 or 2 so they just guessed."

I just finished a return for a deceased client, so I can't call him up and ask what happened.  But we seem to be getting a lot of questions that could be answered with some more information a client can provide by phone or email.