annuity benefits

[hollybdellinger]

my brother had recieved a 1099 r form from allstate insurance regarding a annuity he never recieved from his late wife. now allstate is saying they are investigating it and hes laible taxwise for money hes never recieved?What is the name of your state (only U.S. law)? he lives in missouri and his late wife was a employee of allstate for approx 30 yrs. the annuity was for 37 k and he has never recieved anything but a retirement check from allstate. the 1099 is from 2007, shouldnt they have had a audit showing the annuity hadnt been dispersed?

 

[anteater]

Until Allstate responds, your question is premature.

Was his wife retired when she passed away? What do you mean by "retirement check?" How large was it?

 

[hollybdellinger]

re annuity

she had a retirement benefits check and it was over 200k., it was a separate benefit from the annuity, and allstate has been investigating this for over a month, they keep passing it around to diff departments. the problem is my brother cant file his 2007 taxes until this is resolved, as on the 1099 there was no taxes taken out of the annuity{this is according to his tax man}

 

[hollybdellinger]

re annuity

he recieved a separate w2 on the retirement check as taxes were taken out of that.

 

[anteater]

It seems excedingly strange that he is just now investigating a 1099 from 2007 and he has not yet filed his return from 2007...

In any event, he should be getting his advice from his "tax man." Unless, and until Allstate determines that the 1009 was in error and issues a correction, the IRS will be looking for that amount on the return.

 

[hollybdellinger]

re annuity

he hadnt filed because hes lazy for one , hes a over the road truckdriver and his idea of filing papers is putting it in a large bag..i think he was used to his wife taking care of everything and doesnt have a clue! when i found out he hadnt filed taxes, i sorted thru his large bags of papers and found the 1099, its also why i hired a private firm to take care of his taxes, its beyond my scope. also my sister in law passed away in 2007, i think hes just let things go and i know the last people to forget about is the IRS. so anyhow hes sorting it out now, and hopefully allstate will resolve it, i just dont understand how a large company can miss issuing a annuity, i would have thought it wold be caught in a audit. thanks anyways!

 

[Dandy Don]

The insurance company can "state" that he is liable taxwise but that doesn't necessarily mean that he is liable (THEY are NOT tax experts), although he certainly could be or his wife's estate could be. He will have to wait and see what the Allstate investigation turns up. With her being an employee of Allstate, I wouldn't be surprised if this is a scheme she cooked up (probably had the check issued in his name and asked him to sign it and he forgot that he cashed it, or she asked someone else to forge his signature and got another person to cash it). He shouldn't be too worried about it unless the IRS comes after him for the money, which shouldn't happen if he gets a competent tax professional or CPA to help him figure out exactly what happened here.

DANDY DON IN OKLAHOMA ([email protected])