1099R with more withholding than the withdrawal amount

[sly]

T/P made several withdrawals amounting to $193,000., during the year & had Fed taxes withheld. They were all coded  3 for disability, no penalty. But the 1099R only shows the withdrawal, no fed withholding. His last withdrawal was coded 2, exception applies, it was for $18,000.  The bank put $21,000 as the fed withholding on this 1099R.  This is the total withheld on all his withdrawals. They say they will not issue a corrected 1099R because that was his last withdrawal & it had a different code so they put the total withholding for the year on that 1099R, which is more than the withdrawal. They say IRS will see the other withdrawal & understand.  The program gives me a red alert that this should not be larger than the distribution, which I know,  & I know it is not going to let me E-file it this way. .  Is there any way I can fix this in the program? 

[IRonMaN · Accepted solution]

Enter the withholding on the larger 1099R.  The IRS is going to tie out withholding by EIN number, not individual 1099Rs.

[qbteachmt]

If you know the withholding from each distribution, allocate them to the 1099-R accordingly. What is that, 12% across the board?

[BobKamman]

I predict you haven't heard the last of this.  If the bank isn't capable of giving a customer a correct 1099, it's probably not capable of sending an accurate one to IRS either.  I would file a complaint with whatever agency, state or federal, regulates these yahoos until they corrected the problem.  And even then, you can expect an IRS notice in a year or so.  At least you would be armed with more evidence.  

[sly]

 I thought about doing that but was hesitant.  You guys do an excellent job.  What would we do without you.  Thank you so much.

[IRonMaN]

You betcha!