Level 3

Solved

Does my client have to file a tax return?

17 replies
90 views

The only tax document is a 1099R for $37000 code g rollover.

ProSeries Professional

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dascpaAnswer

Level 11

I'm sorry, I should have used the past tense. - Was rolled. Thanks for your help.

I would file for safety sake. I agree the taxable income is below the filing threshold, but it guarantees any matching program the IRS has will not flag this transaction for non-reporting. But then I would charge a million dollars because you know the difference between code G and Code 7.

qbteachmt

Level 15

There is not enough information.

From what type of plan (account)?

To what type of plan (account)?

Rollover means, he got the money in between. Or, Transfer? Or, Conversion?

There will be a Box checkmarked, such as Roth or IRA. Or, numbers on which line(s)?

Are you tracking this person's Basis in their account(s) or do they know this info?

We need more details.

Don't yell at us; we're volunteers

M

MEtaxprepAuthor

Level 3

Thank you for your answer. The 1099R is for a 401k being rolled over to a traditional IRA.

qbteachmt

Level 15

Having a 401(k) means your client has or had an employer.

Having only the 1099-R doesn't mean the client has no other financial activity.

And, again, "rollover" as in, he got the funds in between the distribution and the deposit? Is there also a Form 5498?

And you would need to determine if that rollover is Qualified, met all the requirements for not being taxable, the age of the client matters, are they still employed there?

Are you familiar with retirement funds and tax reporting?

Have you used the IRS resources, such as:

https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions

https://www.irs.gov/taxtopics/tc413

Or web resources:

https://www.investopedia.com/articles/personal-finance/072215/401k-rollovers-tax-implications.asp

You are the only one who can do the due diligence to know if this client must file a tax return or not.

Don't yell at us; we're volunteers

PATAX

Level 12

Yes I would file, it does not hurt anything does it? Just my opinion

M

MEtaxprepAuthor

Level 3

Thank you.

PATAX

Level 12

You're welcome

IRonMaN

Level 15

What time will Bob be checking in to tell everyone not to be afraid of a notice somewhere down the road if you don't file 😉

Slava Ukraini!

M

MEtaxprepAuthor

Level 3

Thanks for your comment.

G

garman22

Intuit Community Champion

If you know the client and his past and there are NO other documents, No, I personally would NOT file him. IF the IRS questions further, they will send notice asking for return information etc....

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