Is the IRS mad at me?
February 19, 2008 8:00 AM Subscribe
Good news! Going through some old paperwork I just found a check for $2,600 that I'd never cashed from 2003. Bad news! It was a rollover distribution from a 401K at Fidelity, made out to E-trade. Fidelity says they did file a 1099 in the year they cut the check. Am I screwed for the back taxes, plus penalties?
posted by stupidsexyFlanders to work & money (12 answers total)
Apparently I had a notion to close out this account and consolidate the funds in a rollover IRA I have at E-trade. Never happened.
In the five years since, I've not heard anything from the IRS about this, despite the outstanding 1099 never being matched up by E-Trade with whatever form they file to show they got the $$ within 60 days.
I can't just unwind the whole thing and "decline" the check, as this was an employee 401(k) at Fidelity and they won't allow me to "add" to it. I explained it was never technically "withdrawn" but to them it was (the account still exists, with a zero balance). All they'll do is cut another check to the institution I name.
If I go that route I feel sure the IRS will match the distribution up with the deposit at E-trade and inflict all kinds of heinous penalties on me. What are my options?
I know you're not a tax advisor, but I don't think the $$ at stake here warrant paying an actual tax advisor. Maybe I'm wrong about that?