"If this happens and you file without Form 8606, in the future, your prior years basis is not going to show any reduction when it is used."
@fanfare , that's true, but incorrect reporting doesn't mean that the basis wasn't reduced. The IRS might not catch the incorrect basis shown on a future Form 8606, but it would still be wrong. It's the tax code, not the mistaken reporting on From 8606, that dictates how the basis is applied.
