I got an IRS letter that states my return does not match the records they have from others. In particular, it shows I reported $0 but they were reported a non-zero amount for taxable retirement income from a rollover IRA. However, in my case, this income is not taxable because I directly rolled it over to my new employer's 401(k). It is listed on my 1040 on line 15a of 2010 1040 with a left column note (put there by TurboTax) that states: "Rollover".

What has gone wrong? Is it that the target of the rollover did not report receiving the funds or that the sender did not properly report it was a direct rollover?

  • When was the rollover? Is it Possible that the money was sent by the first one in late December but arrived at the other one in early January? Aug 18, 2012 at 15:50
  • @mhoran_psprep why would that matter? Direct rollover is a transfer between the custodians, its not going through the taxpayers bank account (that's why its called direct)
    – littleadv
    Aug 18, 2012 at 23:25
  • This is a records match question. If company A sent it on Friday December 30th 2011, it might not get processed until Tuesday January 3rd 2012. Therefore 2 different tax years. The new company wouldn't tell the IRS until January 2013. Aug 18, 2012 at 23:29
  • doubt its relevant. Deposits are not reported to the IRS by the new company.
    – littleadv
    Aug 19, 2012 at 0:05

1 Answer 1


Talk to the TurboTax support. Generally, I've heard of several similar reports this year where people with 1099-R that had "G" marked properly got similar notices (direct rollover), and it appears to be a glitch in the IRS programming. If this is the case for you, then a simple response explaining that you reported correctly and attaching the copies of the appropriate forms would suffice.

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