Hi Taxpros,
I'm stumped.
My friend took a distribution from her IRA (i'm assuming Traditional) and rolled it into a 403b plan at work. The 1099 R was included on her return with an amount on line 15a and taxable amount of "0". The word "rollover" was noted on that line on Form 1040 as well.
She just received a letter from the IRS saying that she owes taxes/int/penalties on the distribution. I'm waiting to see the actual 1099 R but looking at the pdf return - it had a distribution code of G which is trustee to trustee transfer.
She filed this in Turbo Tax and to me it seems like she did it correctly - any reason why is she getting this letter?
I was going to write a letter to the IRS but I'm not sure if I'm missing something.
Thanks!