Corrected 1099

[jpdx]

I received a 1099-R with the wrong distribution code (this was for a 1035 exchange). After calling the custodian, they realized the mistake and sent a corrected 1099-R. However, the "Corrected" box was not checked. Should I be concerned? Without the box checked, will the IRS consider both 1099's to be active?

[WookieeStache]

I don't believe so.  From my understanding, they can either issue a new/replacement W-2 to replace the prior one, or a corrected W-2 that is classified as such and you must submit both.

I am in a similar situation with my company, but they are issuing a corrected W-2 vs a replacement W-2.

[MDM]

I received a 1099-R with the wrong distribution code (this was for a 1035 exchange). After calling the custodian, they realized the mistake and sent a corrected 1099-R. However, the "Corrected" box was not checked. Should I be concerned? Without the box checked, will the IRS consider both 1099's to be active?

Depends on whether the custodian sent one or two versions to the IRS.  If they hadn't sent the first one to the IRS, you have no problem - just use the second.

If they have sent both to the IRS, the IRS computer program might indeed flag one as missing from your return.  Including a note with your return explaining the situation might eliminate a letter from the IRS if the computer does kick out your return.

[jpdx]

I will attempt to ask the custodian if they filed the first 1099-R with the IRS, but I have a feeling the phone representative will be clueless.

I'm using TurboTax and not able to attach a note to my return unless I print and mail it.

I'm worried this issue could cause a months long delay in my refund. Any other suggestions?

[MDM]

In your situation (i.e., not knowing what the custodian has done or will do, nor what the IRS will do), I might just file using the second 1099-R exactly as is.

That has the advantage of using all the correct information, thus minimizing explanations if ever needed (and they might not ever be needed).

See Got a corrected 1099R, but it's not marked as corrected - Bogleheads.org for a similar situation.

[hooplady]

They have until 2/28 to file their copy so it's entirely possible they were able to issue a correct version before they ever sent the wrong one.