NY Problem

[B. Jani]

One of my client received NY DTF-960 mail audit for form IT-201 for 2010. Client receive UK pension about $3400 direct deposit in to US bank account. Spouse has NYC pension. I have placed $3400 in line 29 of IT-201 due to other pension. NY decline it and want to charge tax and interest. I talk to them and they want 1099-R for it. UK does not mail 1099R. I explained to NY that other pension is included on line 21 as other income marking UK pension which is rollover to IT-201 line 15 as UK Pension and subtracted on line 29 of IT-201 as pension. They see that but insisting for 1099R.

How do I convince NYS? Client has 12 bank statements showing direct deposit but does not want to provide to NYS as proof.

Any ideas or any one dealing with this?

TIA.

[MsTabbyKats]

I would have put it on the 1040 Line 16 (with spouse's pension)....and then on the IT 201 on Line 10(with spouse's pension)...and exclude $3400 out on Line 29. (I do realize that you cannot e-file...no EIN for the pension).

However....at this point....I'd amend the state return to have it show up on Line 10....and exclude on Line 29.

I think they are giving you a problem because "a pension exclusion" has to be excluded from pension income....not "other income".

Unless you're a magicking...you can't produce a 1099-R...but, that may be beyond the grasp of the phone reps.

ETA...I'd add on the 201X-for the reason....Reclassification of income

[kcjenkins]

Sounds like good advice to me.

[michaelmars]

you will need something to show its a pension and not some other sort of income. Is there a treaty where this isn't even taxable in the US? You will have to look. Many countries have different treaties that include/exclude income