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Full Version: Defaulted wrong loan amount
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jvandyke
We have a company that submitted their own 1099R for a participants loan default for 2003. They issued it for the wrong amount (too much by about $1,000).
Do we just need to submit a corrected 2003 1099R for the correct amount or is there more needed?
TAG
[/QUOTE]Do we just need to submit a corrected 2003 1099R for the correct amount or is there more needed?

You will also need to submit a 1096. There should not have been any withholding on the 1099R so 945 would not be affected.

The participant will also need to amend his/her 2003 tax return as they most likely have overpaid as a result of this.

On another note, make sure the participant's account wasn't reduced by the wrong amount....these things tend to slip through sometimes.

TAG
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