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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 127549

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.

Foolish regards,

ancora imparo
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