On an existing gift annuity contract, a distribution was made to the donor for a December 1, 2009 payment via check. The check was lost in the mail, but the donor did not notify us of the missing payment until January 2010. We reissued the payment via direct deposit on January 25. So do we account for this payment on the 2009 1099-R (where it should have been) or the 2010 1099-R (which would give them an extra payment for 2010)? I would really appreciate any IRS reference, as I can't find anything relating to this situation. Thanks!
1099-R Year of Gift Annuity Payment
The bottom line answer to your question is that due to constructive receipt doctrine you should include that payment in the annuitant's 2009 Form 1099-R. (Do not manually adjust your system to force it onto the 2010 1099.)
Gift Annuity Payment