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Financial Planning / Tax Strategies
|Subject: Re: 1099 R overstated||Date: 5/19/2010 8:05 PM|
|Author: nwvic||Number: 110458 of 125218|
So the income was constructively received.
Hmm, payee was not alive to cash the checks so checks issued in error were not received by payee/decedent. Cash basis taxpayer - I don't see constructive receipt, but that doesn't mean the IRS won't.
When did the client return the checks to Aetna? In 2009 or 2010?
I believe checks were destroyed. I can see Aetna not wanting to correct 1099 with checks potentially still out there, yet to cash them would be fraudulent. Funny thing is they kept sending them until a month or so ago, even after repeated phone calls. I wonder if they will issue another 1099 for 2010.
Well, I don't think it's technically correct, but you could always put a negative amount on line 21.
Yes, that corrects total income, but a wage based credit is now off.
<sigh> It's May, and hay fever season, and my brain is wrapped up in unpleasant family matters. What's my name again? Oh yeah, I remember.
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