Missed filing a 1099-R for 401k last year (2023 taxes) - Need to amend my return?

Would they owe penalties on just the tax for the $489, or on the whole distribution amount? And does the IRS automatically match these forms or is there a chance they might not notice?

The penalties and interest would only apply to any additional tax owed from the $489 taxable portion, not the entire distribution amount. The tax impact should be minimal since most of it was after-tax contributions. The IRS absolutely has an automated matching system that compares information returns (like 1099-Rs) to what was reported on your tax return. They will almost certainly catch this discrepancy within the next 6-18 months and send you a CP2000 notice. It's much better to proactively fix this now than wait for the IRS to find it, as voluntary correction typically results in reduced penalties.

How exactly does this work? Do I upload my tax forms to their site? Is it secure? I'm always hesitant to share financial docs online.

I'm curious - did they actually give you official tax advice that you didn't need to amend? That seems like a big claim for an online service. What if the IRS disagrees with their assessment?

The process is straightforward - you upload your documents through their secure portal (they use bank-level encryption) and their system analyzes them. They don't store your documents permanently, and everything is handled confidentially. Their system doesn't just give generic advice - it gives specific guidance based on your actual tax documents. In my case, they identified that my rollover qualified as a direct trustee-to-trustee transfer which doesn't require reporting on my return if done correctly. They showed me the specific IRS rules that applied to my situation. They're not replacing a CPA, but they help you understand what your tax documents actually mean.

How does this actually work? I thought there was no way to get through the IRS phone system without waiting for hours?

Sounds like a scam to me. Nobody can magically get you through to the IRS faster than anyone else. They probably just put you on hold and charge you for the privilege.

It works through their system that continuously dials the IRS for you and secures your place in line. Instead of you personally having to redial dozens of times and then sit on hold forever, their system handles the hard part and calls you once an agent is actually about to pick up. They're not a scam at all - they're just using technology to solve the phone system problem. The call is directly with the IRS - Claimyr just handles the frustrating dialing and waiting part. They don't answer as the IRS or pretend to be them. You're talking directly with actual IRS representatives, which is why I found it so valuable when dealing with my amended return questions.

Thanks for sharing your experience! How complicated was it to file the amendment? I've never done one before and I'm worried I'll mess it up somehow.

Filing the amendment through TurboTax was pretty straightforward. Since you already filed with them, you just log in, choose the option to amend your 2023 return, and follow the prompts. It'll ask what you're changing, and you'd select "income" and then add the 1099-R information. The system recalculates everything automatically. Just review the changes carefully before submitting. If your situation is simple like mine was (just adding a missed form), it shouldn't take more than 30-45 minutes. The hardest part is waiting for processing - paper amendments can take 6+ months to process currently.

Not the OP, but I think that's what they meant by "Form G" - they were referring to the distribution code in box 7. That's super important for determining the tax treatment.

You're right - it does have code G in box 7. I just double-checked the form. Does that change anything about how I should handle this?