Reporting Traditional IRA contribution on the tax return for the year that the contribution was for has ALWAYS been required for as long as Traditional IRA's have existed.
The 8606 requirement for non-deductible contributions has been the law since 1987 (prior to 1987 non-deductible contributions were not allowed). A 5498 is information only and does not go on a tax return. There is noting on a 5498 that says the contribution is deductible or not deductible. Only you can tell the IRS that and only on a 8606 form.
"I was told that the IRS will accept good faith entries."
I don't know who told you than but it is not true.
See IRS Pub 590A page 15
https://www.irs.gov/pub/irs-pdf/p590a.pdf
[quote]
Form 8606. To designate contributions as nondeductible,
you must file Form 8606.
You don’t have to designate a contribution as nondeductible
until you file your tax return. When you file, you
can even designate otherwise deductible contributions as
nondeductible contributions.
You must file Form 8606 to report nondeductible contributions
even if you don’t have to file a tax return for the
year.
There is also a $50 penalty for failing to file a 8606 when required.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
