Taxpayer received 1099R claims it was a direct rollover and not a distribution code of 7. How do I rectify this?

[Cindy]

Proseries

[Jim-from-Ohio · Accepted solution]

If it was rolled over you can scroll down on the 1099-R worksheet to the rollover section and check on entire amount rolled over.

[Marc-TaxMan]

right, but none of US believe it was really rolled over.

[Cindy]

Jim,

Thank you for that answer. Yes, I do have it ready if it was rolled over, but I want to be really sure that it was. The clients do not need more heartaches at this time. Not a good time for their family.
Marc.TaxMan, maybe it was rolled over, but will not know until the paperwork comes in. The clients are pretty sharp, just a lot of things have been happening. Prayers would be nice all around. Sincerely, Cindy

[Just-Lisa-Now-]

Probably wont see the 5498 until April or May.

Ask to see the bank statement for the account that it was rolled into, showing the deposit....it may very well have been automatically transferred to another account...that account may not be a retirement account though or the 1099R would have had a Code G.

[Cindy]

Just Lisa Now, the IRA was taken out and sent to a Charles Schwab account where it is buying and selling stocks. The client can not remember very much if the check was sent to him or straight to Charles Schwab. The one statement that was brought for some time during the year does not match the distribution is is much less. Thank you for replying best to you.

[Just-Lisa-Now-]

Sounds like it may have just been sent to a brokerage account, not another retirement account, which would make it a taxable event.  

You need the statement for the account where the money landed, or get the client in the office and call the brokerage, the client can give them permission to speak with you...much easier than asking the client to understand and relay this important type of information..

[Cindy]

Just Lisa Now,
Thank you again for your wisdom and advice. You are more than likely correct I did send the client home with homework on this issue. I will give the client a couple of days than take your advice.  Sincerely, Cindy

[Marc-TaxMan]

if it was distributed on 2018 1099-R, and rolled promptly, it should show now on 5498.

[Cindy]

Marc.Tax Man, I will ask them if they received the form 5498 since they failed to bring that with them. Wow, all of you are just so helpful. I just want to do what's correct for the client. It's a whole year of social security. They just will need this in the near future. Thank you so much for your feedback. Sincerely, Cindy