The IRS has delayed implementation of its new “code Y” reporting requirement on Form 1099-R for qualified charitable distributions made by individual retirement account owners. The change came after the American Bankers Association urged the agency to delay the effective date of the requirements by at least 12 months.
According to ABA, for bank IRA trustees and custodians, implementing the new code Y would involve considerable time, costs and resources in updating systems and in revising the terms of the bank-IRA customer agreement. The IRS last week made the entry of code Y optional on 2025 tax forms.
“If you are completing and filing a 2025 Form 1099-R, you may choose to, but are not required to, enter code Y in box 7,” the FBI said in a Q&A on its site.
