1099R Correction

Original 1099R completed and filed and then corrected one filed, only issue is that corrected box didn't get marked.  Any idea how to fix this?  Now both are showing as income for him.  This was a complicated in kind rollover and the original amount rolled over was overstated.

First thought is, does the IRS have a way to tell the distributions are identical?  Like that "account number" field - were those identical?  At least that "might" support being able to indicate the forms represent the same basic distribution.

(Otherwise, what, correct them both again to show zero, and then re-issue only one correct one?)

Just a thought... if the plan name, SSN, EIN are identical on both 1099-R's you probably only need to send one corrected 1099-R showing $0 in box 1 and 2.  Also, if the 1099-R's were coded as rollovers there should be no taxable income.

...or just give up and have him explain it to the IRS if they ever ask. I'm not sure it can be corrected without making it worse.

The IRS most likely will raise any concerns directly with the participant who will then have to explain what happened.  The IRS may do so sooner or later depending upon their schedule.  Consider providing the participant and the plan administrator with complete documentation of what happened and along with attempted corrections, if any. 

FWIW FTW recommended doing a negative corrected 1099R negating the first two and then a corrected one with the correct amount.  We'll see if that works...

The math works, but you will not know if the IRS put all of the pieces together until time passes without the participant receiving correspondence from the IRS.  This may take as much as three years or so.  Do consider letting the participant and plan administrator know the details so any correspondence will not be a surprise.