Re: You can file delinquent Forms 8606, even as fa...
Level 15

Retirement tax questions

A 2012 8606 can only report a 2012 non-deductible *for* the 2012 tax year.   A 2011 contribution can only be reported on a 2011 8606.  

 

If you did not make a 2012 non-deductible contribution then you should also attach an amended 2012 8606 showing a zero contribution  and attach a note that the 2011 contributiin was mistakenly reported on a 2012 8606.       The IRS will probably not access any penalty for an error.

**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.**
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Returning Member

Retirement tax questions

OK, Thank you! I was able to pull transcript fr those years from IRS.Gov and I see those contributions being reported on form-5498 by institution holding my IRA and tax return clearly shows we did not take any deduction for that year. So I guess even though IRS knows that a contribution was made (reported by institution) and no deduction was taken (from Tax Return), we still need to file 8606? Is that correct?

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Level 15

Retirement tax questions

Yes.   The 5498 does not replace a 8606.  The IRS would probably never catch this but if they did check they would find that the 8606's that you file did not match what the bank reported on 5498 forms and could deny the tax offset.   I recommend going by the book.

**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.**
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Returning Member

Retirement tax questions

Will do! Thanks for the help!!

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Returning Member

Retirement tax questions

Hi...

I failed to file 8606 for non-deductible IRA contributions for 1985, 1995 and 1996.  Where would I get Form 8606 for 1985?   

 

What could I use as a reasonable cause explanation to avoid the non-filing fee of $50?  I was preparing my taxes manually for these years and did not realize that I was required to file Form 8606.   I wonder what has been the experience of other people in this chat.   Must I include the $50 fee upon filing or do I wait to be billed by IRS?

 

thanks much

 

 

    

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Level 15

Retirement tax questions


@luvlondon wrote:

Hi...

I failed to file 8606 for non-deductible IRA contributions for 1985, 1995 and 1996.  Where would I get Form 8606 for 1985?   

 

What could I use as a reasonable cause explanation to avoid the non-filing fee of $50?  I was preparing my taxes manually for these years and did not realize that I was required to file Form 8606.   I wonder what has been the experience of other people in this chat.   Must I include the $50 fee upon filing or do I wait to be billed by IRS?

 

thanks much

 

 

    


Do NOT send the $50 penalty.  If the IRS imposes it then they will bill you.   The explanation can be anything that is reasonable.

 

Past years 8606 forms from 1987 to present can be found here:

https://apps.irs.gov/app/picklist/list/priorFormPublication.html?indexOfFirstRow=0&sortColumn=sortOr...

 

I do not believe that there is any 1985 8606 form because the Tax Reform Act of 1986 created the 8606 form and was effective starting in 1987 so it did not exist prior to 1987. Prior to 1987 I do not believe that it was possible to make a non-deductible Traditional IRA contribution.

 

 

**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.**
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Returning Member

Retirement tax questions

Thank you very much!

 

That explains why I could not see Form 8606 for 1985.  But I got a Form 5498 in 1985 from Vanguard showing contributions to IRA for that year and with the corresponding market value at end of the year.    In 1988, I also got Form 5498, no contribution but with market value of the account at end of the year.   Any thoughts then as to whether the 1985 contribution should form part of the cost basis?

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Level 15

Retirement tax questions

Traditional IRAs don't have a "cost" basis, they have basis in nondeductible contributions.  Since nondeductible contributions were not permitted until 1987, a contribution made for 1985 did not add to basis in nondeductible traditional IRA contributions, even if you failed to deduct a permissible contribution.

 

Having a Form 5498 for a particular year just means that you made an IRA contribution for that year.  IRA contributions first became permissible in 1975.  I'm not sure when Form 5498 was introduced, but it was before 1987; I have one from 1986.

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Level 15

Retirement tax questions

The earliest 5498 that I can find is 1983.  And it only has one box on it - box 1 "IRA or SEP contributions".

**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.**
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New Member

Retirement tax questions

Can you repost that link (the as far as 1995 one). It is broken. I'd like to see it is possible, I'm dealing with this situation. 

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Level 15

Retirement tax questions


@Chickpea wrote:

Can you repost that link (the as far as 1995 one). It is broken. I'd like to see it is possible, I'm dealing with this situation. 


The link for past years 8606 form works for me:

 

https://apps.irs.gov/app/picklist/list/priorFormPublication.html?indexOfFirstRow=0&sortColumn=sortOr...

 

(There are several pages of the forms so you need to go to page 2 for 1995)

**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.**
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