Need help with reverse rollover - do I owe tax?

[SilverJK]

Back in 2016 I decided to roll over my pre tax traditional IRA which was in an account at my bank into my employers pre tax traditional 401k. Now I recently got a proposal from the IRS stating that I owe tax on that traditional IRA as it says "corrected by the IRS - retirement income." It seems the IRS is under the assumption I just simply withdrew the Traditional IRA and didn't report it as income, which isn't true as I rolled it into my 401k. I have all documents from this transaction to prove it. The simple question is - do I really owe tax to the IRS in this case? I was certain I didn't, but now, I just want to be sure. Thanks for any help.

[disneysteve]

I am not an accountant but just thinking about this, if the IRS is saying that, you need to double check how you reported the transaction on your tax return that year. That could be where the problem lies. And if I got a letter like that from the IRS, my first call would be to my accountant.

[Like2Plan]

Did you do a direct rollover? (Edited to add: though, I think that might be the only way a 401k might accept a roll in)

Checking with your accountant is probably the best advice, but if you want to take a quick peek at your tax forms for 2016--maybe this might help in the meantime.

I'm not an accountant, but DH recently did a rollover (although he went the other way from 401K to IRA).
So, the question is--did you get a 1099-R? Does box 7 have a "G" code?
(code G = direct rollover of a distribution to a qualified plan, etc)

Then, was that information entered on your 2016 taxes?

(I am assuming the numbers are the same for 2016 as 2017, but this is what ours indicated)
On page 1 of your 1040, line 16a indicated rollover amount. Assuming the proper code is entered, line 16b should be 0 (assuming you don't have any other pensions and annuities).
Turbotax also put "ROLLOVER" in front of line 16a.

[sblatner]

I would call the IRS, explain the situation and see what they suggest. I have called them a few times and have found them to be very nice and helpful.

It may be a simple misunderstanding or the IRA company may have filed the incorrect form.