When to File a 1099-R With Taxes?
Given the penalties applied by the IRS for failure to adhere to tax law, it is only natural that taxpayers make every effort to file all forms in accordance with IRS guidelines. However, once the influx of W-2s and 1099s starts to roll in, it can be difficult to determine which forms should be attached to your return and which forms are safe to omit. Fortunately, understanding how to file your 1099-R is relatively simple.
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Definition
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1099s are informational returns used to report various categories of income other than wages, salaries and tips. A 1099-R is used to report distributions from IRA's, pensions and annuities. You should receive your 1099-R in the mail no later than January 31.
Filing
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Generally, you are not required to attach form 1099-R to your tax return unless federal tax was withheld from your distribution. If box 4 of your 1099-R shows any amount other than zero, attach copy B of your 1099 to your return when you file your return. Otherwise, you are not required to attach a copy of your 1099-R with your income tax return. If you e-file, it is also in your best interest to forward 1099-R to the IRS if federal tax was withheld even though it is not required. Your payer is required to send a copy of the 1099-R to the IRS in March.
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Considerations
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IRA and other distribution transfers -- exchanges from one trustee to another -- do not trigger a 1099-R and are not required to be accounted for on your income tax return. This is simply because with transfers, money is sent from trustee to trustee, and no money is ever issued to the taxpayer. However, rollovers do trigger a 1099-R since the money is first sent to the taxpayer before it is deposited into a new account.
Lost 1099-R
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In cases where you did not receive form 1099-R by January 31, contact your payer. If your payer does not send the copy in time for you to file your return, contact the IRS to provide it with the name, address, dates of employment (if applicable) and phone number for the payer. Then complete IRS form 4852 and submit it to the IRS as a substitute for your 1099-R. If you receive your 1099-R after your return has already been filed and the amounts listed on the 1099-R do not match the amounts entered on your form 4852, then complete an amended return using IRS form 1040X to make the adjustment. The processing time frame for an amended return is eight to 12 weeks; an amended return cannot be filed electronically and must be mailed to the IRS.
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