Tax Law (Questions About Taxes)/1099-B and 1099-R


I cashed out a roll over IRA in 2011 and thought I had properly filed my taxes.  Today I received notice from the IRS that the income I stated was lower than what was reported by E*Trade and I owe additional taxes.  The IRS document states they received a 1099-B from E*Trade, but I was only able to locate a 1099-R from E*Trade.

What is the difference between the 1099-B and 1099-R forms? Should I have received the 1099-B and/or should E*Trade have filed the 1099-R?

In your opinion, is this something I should challenge?

Additional information on my 1099-R:
Boxes 1 and 2a are the same amount
Box 2b: Check mark in Taxable amount not determined and Total Distribution boxes
Box 7: Distribution code = 1 and IRA/SEP Simple box is checked
All other boxes are zero or blank

Thank you for any clarity you can provide,

Chris H.
Portland, OR


Thanks for your question.

In cashing out the IRA you should only have received a 1099-R, which is a distribution from a qualified retirement account.  A 1099-B is used for the sale of securities.

You should check with e-trade and definitely challenge the IRS allegations.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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