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Financial Planning / Tax Strategies
|Subject: Re: 1099 R overstated||Date: 5/19/2010 8:21 PM|
|Author: foo1bar||Number: 110459 of 125861|
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.
Just to play devil's advocate:
The executor of the estate (the spouse undoubtedly) did receive them, right?
And on decedent's behalf the spouse would have been able to cash a check from July if they had come across it in a drawer, right?
Doesn't it follow that there is constructive receipt?
If they were destroyed in 2009 (and who's going to prove they weren't unless they get cashed?), what then though?
So - what if the 1099 doesn't get corrected, and the IRS does send a letter saying it didn't match?
It'll take an hour or so to send a letter back saying "Aetna didn't provide an accurate 1099R. We asked them to correct it and they refused. Here's what happened..." and won't that likely be the end of it?
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