Returned 1099-R's

[Guest bmurphy]

We've had a number returned with no forwarding address - company is out of business & plan is termed. Is the proceudre for locating these people the same as for missing participants that haven't been paid out? Or given that we've made an attempt to mail the form once do we need to go any further?

Thanks

[Guest b2kates]

I believe you primary responsibility having attempted delivery is to maintain the returned forms to show if ever questioned by IRS. I presume that the proper filing with the IRS was timely done.

Brett

[Guest bmurphy]

Brett -

Thanks for the reply. Yes, forms were filed in a timely fashion.

[Guest b2kates]

IRS will eventually match the reported 1099 amount to participant SSN. They will likely then receive an IRS notice. That is why you need to keep the returned copies. Participant will claim they never received 1099 --why should they be taxed. This may result in IRS service center contacting you for paper copies.

Brett