How to Dispute a 1099R

Receiving an incorrect Form 1099-R is frustrating, as the errors can result more taxes due on your return than you owe or an underpayment of tax, leaving you open to penalties. Form 1099-R is used to report distributions you received from various plans, including pension, retirement and insurance contracts, to you and the IRS. You must include 1099-R figures on your income tax return. You can dispute a 1099-R and still file your taxes on time by contacting the payer on the form and asking for help from the IRS.

Locate the records you have that relate to the 1099-R. For example, if the 1099-R is for money you received from your pension, find all of the pension paperwork and your bank statements showing the pension deposits. Add the total distributions together and double-check your figures against what's shown on the form.

Contact the payer on the 1099-R, as shown in the top left-hand corner of the form. Ask for an amended 1099-R, and state you have documentation showing the form you have is wrong. Send a request for an amended form with copies of your documentation by certified mail, with a return receipt, if the payer will not send an amended form. Copy the request and mail receipt.

Contact the IRS at (800) 829-1040 for help after February 14 of the filing year. The payer has until that date to send you an amended form. Explain the problem with the 1099-R you received, and tell the IRS about your attempts to get a corrected 1099-R from the payer.

Complete the Form 4852 the IRS sent you after you contacted the agency if the payer does not give you a corrected form before the tax filing deadline. Form 4852 is used for reporting the correct information for a 1099-R if you received an erroneous form and cannot get an amended form. Complete the form with the corrected 1099-R information. Attach Form 4852 to the back of the tax return, before any other forms.

Warnings

  • Do not ignore an incorrect 1099-R. You may owe back taxes, penalties and interest to the IRS if you do not try and correct the form.

References

About the Author

Anna Assad began writing professionally in 1999 and has published several legal articles for various websites. She has an extensive real estate and criminal legal background. She also tutored in English for nearly eight years, attended Buffalo State College for paralegal studies and accounting, and minored in English literature, receiving a Bachelor of Arts.