How do you recharacterize a 1099R coded incorrectly as a taxable distribution when it was truly a rollover?

[AnmarieA]

I worked with Live Chat rep and they could not make the software work to show the improperly coded distribution as non taxable.

[qbteachmt]

The 1099-R is not coded incorrectly; it is coded for what this Issuer knows.

If the taxpayer then rolled it, it's up to the preparer to enter the 1099-R as issued, then mark that it was rolled per qualifications. Was it rolled including compensating for withholding?

[AnmarieA]

So where do I indicated rolled per qualifications? Where in the software does it allow you to record that it is not taxable. Their financial advisor informed me that the funds were a trustee to trustee transfer and the Client never had access to the money. Nevertheless how do you make the transaction NON taxable in the software as the -1 in taxable does not work and chat could not assist me on making it work?

[AnmarieA]

I figured it out and kept the 1099-R as issued and then indicated an indirect rollover. 

Thanks for your assistance!

[abctax55]

Put a zero in the "taxable" box.

Mark the box that says "rollover".  

Explain in a footnote and/or using Form 8275 depending on the circumstances.

[qbteachmt]

For future reference: "and then indicated an indirect rollover"

What you have is a Direct Rollover = a Transfer between trustees.

Indirect = the taxpayer had possession and access, in between the moving between accounts of a similar type. That's why I asked about withholding.