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I received a notice from the IRS that I owe $1800.00 for tax and penalties for a $6658 IRA cash out that they say we received in 2010. The facts are that we rolled a 401K into a Fidelity IRA. This money stayed in the IRA for a couple of years. We then rolled this money into another 401K at my wife's current employer.
I never received the 1099R from Fidelity and never supplied it with the 2010 tax return. (Didn't think of it with no 1099 and it slipped my mind.) I called Fidelity and they said the records are retired and are not active in the system any longer. I then called the bank holding company that does the banking for Fidelity and they sent me the 1099R that has a G distribution code on it. It says the payer is Fidelity but the sent to address is our home address. We never received the money or the check it actually did go right to my wife's companies 401K.
I then called my wife's 401K administrators and they provided a statement from the time period in question that shows the rollover in the exact amount that is on the 1099R. (It actually says rollover on the statement.)
I sent this data to the IRS. I also called them and the person that I spoke with said that may not be good enough. She says that the G distribution code does not necessarily mean that the money was rolled into the necessary account in the allotted time.
The have 30 days to respond to my data. What would be my next step? I'm kind of at a loss at this point. Fidelity seems useless and does not really care. The bankers that manage the money for fidelity only provided the 1099R. One would think they could provide a check copy or an electronic record of some type that would show the transaction never reached our hands.
There is nothing I can do until they respond. I'm hoping that sometime with some semblance of sense will look at the docs and sign off on it. I hate to get a lawyer involved it will eat up the $1800 in no time but the fact is I just plain don't owe the money.
What else would you guys suggest I do? I'm assuming someone with some sense will look at the hard copies and see the facts. Anyone had an experience like this before?
Thanks
Pat
I never received the 1099R from Fidelity and never supplied it with the 2010 tax return. (Didn't think of it with no 1099 and it slipped my mind.) I called Fidelity and they said the records are retired and are not active in the system any longer. I then called the bank holding company that does the banking for Fidelity and they sent me the 1099R that has a G distribution code on it. It says the payer is Fidelity but the sent to address is our home address. We never received the money or the check it actually did go right to my wife's companies 401K.
I then called my wife's 401K administrators and they provided a statement from the time period in question that shows the rollover in the exact amount that is on the 1099R. (It actually says rollover on the statement.)
I sent this data to the IRS. I also called them and the person that I spoke with said that may not be good enough. She says that the G distribution code does not necessarily mean that the money was rolled into the necessary account in the allotted time.
The have 30 days to respond to my data. What would be my next step? I'm kind of at a loss at this point. Fidelity seems useless and does not really care. The bankers that manage the money for fidelity only provided the 1099R. One would think they could provide a check copy or an electronic record of some type that would show the transaction never reached our hands.
There is nothing I can do until they respond. I'm hoping that sometime with some semblance of sense will look at the docs and sign off on it. I hate to get a lawyer involved it will eat up the $1800 in no time but the fact is I just plain don't owe the money.
What else would you guys suggest I do? I'm assuming someone with some sense will look at the hard copies and see the facts. Anyone had an experience like this before?
Thanks
Pat
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