Quote:
Originally Posted by PersonOfInterest
If you report the amount as 1099R income you may get a letter for not reporting the 1099Misc income. You should find out WHY they issued a 1099MISC rather than the 1099R. Was there a legitimate reason or was this in Error. If in error they should correct it. If as you say the amount is small, then reporting it as the form indicates would probably not make a difference in your tax and would save you the hassle of possibly dealing with an IRS letter.
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I agree. As long as the income amount is correct, report the income in accordance with the 1099-MISC that you received. If you want to notify the employer that they used the wrong form, that is fine. But, it is their responsibility to use the correct form, not yours. By changing how the income is reported is just asking for trouble with the IRS. They use electronic algorithms to match income reporting forms to the tax return. If you report the income on the Form 1040 line that doesn't match the 1099, it may generate an automatic nasty letter from the IRS. If the IRS received a 1099-MISC, they will expect to see income on line 8 of the Form 1040, not on Iine 5b, where 1099-R income is entered.