Correcting an incorrect 1099-R?

[John A]

Several participants (but not all) participants for 1 company received 1099-Rs with an incorrect code, indicating nontaxable distributions rather than the correct taxable distribution codes. The 1096 appears that it would not change.

How should the incorrect 1099-R filings be corrected?

[Theresa Lynn]

According to RIA's Checkpoint (and print compliance products), you would file corrected Forms 1099-R with IRS and provide corrected copies to the recipients of the distribution. You would check "corrected" at the top of each Form 1099-R and then attach or submit them with a Form 1096 if on paper or follow the electronic/magnetic media filing rules if filing by that method (i.e., Form 4804 or electronic procedures).

[quote:

¶2,206. Correcting Form 1099-R.

If the payer makes an error in completing and filing a paper Form 1099-R, the payer may correct the error by filing a corrected return. The official IRS instructions ( ¶50,001 ) include detailed guidelines on filing corrected returns. The procedures vary according to the type of mistake made.

On filing the corrected return, the payer must provide a copy of the corrected Form 1099-R to the affected participant, along with an explanation of why the form is being corrected.

Payers may file corrected returns electronically. To obtain information about filing electronically, telephone the Electronic Filing Coordinator at the Martinsburg Computing Center at 304-263-8700.

If the payer will be filing at least 250 corrected returns, it must file the corrected returns either electronically or via magnetic media, the same as if filing the initial returns ( ¶2,208 ). If IRS approved a waiver of the requirement to file on magnetic media ( ¶2,210 ), the waiver also applies to the corrected returns. If the payer filed the initial returns electronically or via magnetic media, the payer must submit the corrected returns electronically or via magnetic media, unless IRS approves a waiver of the electronic/magnetic media filing requirements or the filer is submitting fewer than 250 corrected returns. For example, if the payer is required to file 400 Forms 1099-R but is filing only 75 corrected returns, it is not required to file the corrected returns electronically or via magnetic media.

---snip---

If the filer makes a mistake in completing and filing the forms attached to Form 1096, it may correct the mistake by filing another return. The official Form 1099 series instructions ( ¶50,001 ) include guidelines on filing corrected returns. The procedures vary according to the type of mistake made.]