Late filing of form 8606

[macuser_22]

It looks like there are 2 problems:

1) I you made a 2019 $6,000 non-deductible Traditional IRA contribution then you failed to enter it in the IRA contribution interview so that it would be on line 1 [edited] of the 8606.

2) If line 2 has $5,500 then that says that you have prior years carry forward basis of $5,500.  If line 1 has the $6,000 2019 contribution that it should had you entered it, then  line 3 would be $11,500 in the IRA.

But line 7 indicates that you only converted $6,002 and line 6 says that the year end IRA value was zero so  what happened to the line 2 $5,500?   

Did you also do a 2018 (or earlier)  conversion that was not reported correctly so $5,500 carried over?

[macuser_22]

Above edited - I typed line 2 when it should have been line 1.

[fulanimary]

Hi macuser_22,

Thanks for your patience with me.

Do you think I should amend my tax returns with all these errors?

[macuser_22]

Yes.

[fulanimary]

Any recommendations ?

Should i amend my tax returns using turbo tax?

Do you know how much turbo tax charges for amendment of tax returns?

Will there be a charge for each year or collectively for an amendment service?

I'm really worried now.

I'll have to use the most cost-effective way to resolve this problem

[macuser_22]

No charge to amend. But at I said above the missing 8606 forms can be file by themselves. 

 If the 2019 year end value of all Traditional IRA accounts was zero as indicated by what you reported on line 6 of the 8606 form then that dose not explain what happened to  the $ 5,500 on line 2.

If you entered the $5,500 as past basis from the prior 8606 forms not filed and did not use that basis for past distributions then this could get very messy and you might need to take all of your past records to a tax professional who can put it all together.  If you had previous years distributions/conversions then you might have paid too much tax.

You could just ignore the past basis and assume that it is zero and not file any past 8606, just amend 2019 to include the $6,000 on line 1 of the 8606 and enter zero for the past basis that puts zero on line 2.   Then the taxable amount of the 2019 $6,002 conversion will be $2,00.

=====

Online for 2018 ended on Oct 15, 2019. 2018 and earlier can only be amended with TurboTax using the CD/download version installed on a PC or Mac computer.

2019 amended Federal returns can either be e-filed or mailed. 2018 and earlier amended returns can only be mailed. It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS or state receives it.

See this TurboTax FAQ for detailed amend instructions:
https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

-- Amended returns can only be mailed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing.

You can check the status of the amended return here, but allow 3 weeks after mailing.

https://www.irs.gov/filing/wheres-my-amended-return

[fulanimary]

Hi macuser_22,

Can I talk to you on the phone?

Hope you don't mind.

[macuser_22]

No.   We don't do that.   If you want to talk to customer support then:

There is no single published number because it changes contently depending on the nature of the call and agent availability. Following the link below will either give a current number for you to call or take your number for a callback.

(Note that phone support is for paying customers only. There is no phone support for Free Customers.)

Here is a TurboTax FAQ for contacting customer support.

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[fulanimary]

Thanks for your reply.

I'm trying to fill form 8606 starting from 2015.

For 2015, line 2 (total basis in traditional IRAs) will be zero (0) since that is my first year of nondeductible contribution,and conversion to Roth IRA. I'm also below 50 years

Then for 2016,line 2 will be $5500,

Then for 2017,line 2 will be $11000,

Then for 2018 line 2 will be $16500,

Then for 2019 line 2 should be $22000.

Am I correct?

If I'm not correct, can you tell me what line 2 should be in each year starting from 2015.

I maxed my contribution in each year,and line 2 seems to be the line I don't understand in form 8606.

Thanks in advance for your reply

[macuser_22]

Line 1 is the non-deductible contribution for that tax year.   On the first 8606 line 1 would be the contribution amount, line 2=0, line 3 & 14 = line 1 plus line 2.

For each subsequent tax year line 2 is the amount form that last 8606 line 14.

As long as you did not take ANY distributions from a Traditional IRA then it will be additive like you show.

[fulanimary]

Thanks for your reply.

I think I've finally understood how to fill line 2 of form 8606.

I've been converting from traditional IRA to Roth IRA since 2015,so line 2 will be zero (0) in each year.

I really appreciate your help.

Remain Blessed

[macuser_22]

Whoa!!!     You have been converting each year?   How have you reported that and how have you calculated the taxable amount because the taxable amount of a Traditional to Roth IRA conversion is done on lines 6- 25 on a 8606 using the line 1-3 information.

[fulanimary]

I've been using turbotax for my taxes since 2015,and I've just reviewed my tax returns over those years that I did backdoor Roth conversions (2015-2019)

In my turbo tax account , I've seen the 8606 forms for each year,and they were not properly and accurately filled.

I think I'll be amending all of my tax returns.

It's going to be a difficult process for me but I don't understand why the 8606 forms were not properly filled even with the turbotax software.

I'm going to bed now.

I'll start the amending process next week

[macuser_22]

You have me totally confused now.  If you properly filed  8606 for each year then what did you say you need to file a 8606 for 2015-2019?

What was wrong?

[fulanimary]

Sorry about the confusion.

Initially I thought I did not file form 8606 in those years (2015-2018) but I was able to discover that I've been filing form 8606 all along in my tax returns. I discovered the forms in my previous tax returns in my turbotax account.

Then for the 2019 form 8606, which I did in my most recent tax return in July 2020, it was not accurately filled by turbotax software for some unknown reasons

However,the 8606 forms for 2015-2018 were not also accurately filled.

Therefore I'll be amending my tax returns