The IRS seized $116,000 of his refund… on income he never got.

In this NoBS Wealth 12 Days of Giving episode, I’m sitting down again with Morgan Q. Anderson, EA to unpack a real-world 1099-R horror story that turned into a Christmas win.

An investment fund admin walked away, issued a bogus 1099-R for $196,000, and the IRS treated it like cash in hand. Years later, my client opens a notice saying he “forgot” to report it—and the IRS quietly grabs $116K of his refund to cover the “tax.” The money never left the fund. The numbers were wrong. And nobody wanted to fix it.

Morgan walks us step-by-step through:

– How an erroneous 1099-R can wreck your tax life
– What actually happens inside the IRS when third-party reporting doesn’t match your return
– How to use the Taxpayer Bill of Rights and Taxpayer Advocate Service when the system stops listening
– And how we eventually got the refund and interest back

If you’ve ever wondered, “What happens if the IRS is wrong?” or “What if a company reports something in my name that isn’t true?” you need this episode before tax season hits.

This is not theory. This is real money, real stress, and a real game plan to protect yourself.

👉 Watch the full episode: https://youtu.be/bNzyfPhUuWg

👉 Subscribe to my channel: https://www.youtube.com/@stoyhall

👉 Learn more about Black Mammoth (my modern family office): https://www.blackmammoth.com/

Chapters

00:00 The 1099-R “Christmas Horror Story”
00:32 How a $90K Investment Turned Into a $196K Problem
02:10 When the Account Administrator Walks Away
03:15 The Bogus 1099-R That Started It All
05:02 IRS Notices, Captured Refunds, and Mounting Stress
07:18 Building the Case: Timelines, Proof, and Taxpayer Rights
09:45 Calling in the Taxpayer Advocate and Going to Battle
12:28 Winning Back $116K Plus Interest
14:35 How to Check What’s Reported Under Your SSN
16:10 What This Means for You Before Tax Season Hits