Forgot to file 8606s. Forgot to enter 401k distributions. How do I proceed?

[BTRR]

1.  For tax year 1999, I forgot to file a 8606 for a $2,000 after-tax contribution (no distribution was taken).

2.  For tax year 2003, I forgot to enter a 401k total distribution which was comprised of 2 different distributions.  One distribution was the rollover of pre-tax assets into a traditional IRA that contains only pre-tax assets.  The other distribution was a check sent to me for the after-tax assets, which I immediately deposited into a traditional IRA that contains only after-tax assets.  Additionally, I forgot to file a 8606.

How do I go about fixing this?  Do I need to file only the 8606s?  Or do I also need to file amended return/s?  Or, file some combination of 8606/s and/or amended return/s?

Please advise.  Many thanks.

[AmyC]

The form 8606 stands alone. You can correct it and mail it in. Send a separate one for each year needed. Be sure you sign and date the bottom of the forms. Be sure to carry that basis forward. 

Caution: If you filed other 8606 forms since then, you will need to redo them with the correct basis and send them in. On any 8606 forms already filed, you will need to write amended across the top.

Reference: Prior year IRS Form 8606

[BTRR]

AmyC - Re my question 1, thanks! Re my question 2, what are your thoughts? 

[AmyC]

I have had to help someone reconstruct 30 years of 8606 forms for the IRS- due to an audit. I vote  - fix the situation sooner rather than later.

Best wishes!

[BTRR]

AmyC - How does that work, i.e., the IRS is asking for 30-years of 8606s, but they themselves (the IRS) keep records for only 10 years.  Does the IRS keep a 30 year running totals of the figures on 8606s?

[DianeW777]

The IRS has the final say on what they will accept. For this reason you should do what you can to correct your nondeductible cost basis for your Traditional IRAs. As a rule, each 8606 filed provides all current information for the IRS. Start with the last one that was correct, then go forward. 

Should you choose not to do that, the IRS will hold all the decision making and you may end up paying tax a second time on distributions that were already taxed.

The IRS generally accepts late or amended Form 8606 (Nondeductible IRAs) for an unlimited number of years on a standalone basis, often dating back decades, as it establishes tax basis. While you can file them historically to fix errors, refunds are generally limited to the past 3 years (if applicable to any year).

@BTRR