1099-R for Prior Year?

[Guest boberlander]

A client has requested that we prepare a 1099-R for a loan that they have now deemed to have been in default in 1999. They want a 1999 1099-R.

Do we need the actual 1999 1099-R paper forms? Is there some way we can indicate on the 2000 form that this is taxable income in 1999?

Thanks.

[Guest MTransue]

I don't believe there is a way to prepare a 1099-r for a defaulted loan as a deemed distribution for 1999, using a 2000 form. This can be handled as a 1099 for the 2000 plan year, and reportable on the participant's 2000 personal tax forms.

Or, you can go back and prepare a 1999 1099-R, if you can find a form. A 1096 form may need to be prepared as well. You would check on the top of the 1099 as a "corrected" form when submitting to the IRS. However, the participant would have to amend their 1999 personal income taxes. In addition, the employer may need to amend their Form 5500 to reflect the defaulted loan.