@mip63 wrote:
Seems everyone's 8606 issues are special. I've properly filed the 8606 each year required but with the wrong Basis, like so many others. There is no change in any non-deductible contribution for any years from 2004 to 2015 to be corrected on the 8606. Made no contributions, deductible or non-deductible since 2015. No distributions have ever been made. So, all those old form8606 are on "closed" tax returns. Already filed my 2020 Tax return and it has been accepted. Wanted to amend my return and add a 8606 with "0" contribution with the corrected Basis for 2020. Shouldn't I just send a tax year 2020 form 8606 alone to the IRS with a written notice "this is corrected Basis from last filed 8606 in 2015"? Can I send it with my spouses, since both have the wrong Basis, since there isn't any over or under payment of taxes for any year? I want to get the basis correct this year as I'm planning some recharacterization of the non-deductible portion to a Roth IRA. I just realized the Basis error this past month.
TurboTax doesn't have the 1040X ready at this time. If needed, when will TT have the 1040X form? there will be no changes on any line of the 1040X.
What is the simplest way to do this? I have all past years 8606 with corrected Basis but worry about sending too much detail to the IRS. Some posts just state to send the current year 8606 with that explanation.
No "easy" way. 8606 years do not close like tax years do.
Incorrect 8606's can be amended and corrected as far back as 1987.
You need to fill out and mail a corrected 8606 starting with the first year of the error on the 8606 for that tax year. Using the carry forward basis in that 8606 to apply to the next years 8606.
You can mail them together with an explanation of why you are amending them. You should mail certified with return receipt since the IRS will not acknowledge any other way.
You can download blank 8606 forms for any year back to 1987 here:
https://apps.irs.gov/app/picklist/list/priorFormPublication.html?indexOfFirstRow=0&sortColumn=sortOr...
Also if you had a distribution for 2017 to present and had a distribution requiring a 8606 then you would need to amend that to report the correct taxable amount.
If you owe additional tax on Any distribution back to 2011 (10 years) you might also need to amend them - the 3 year statute of limitations applies to tax owed to you, if you owe additional tax the IRS can go back 10 years. But the IRS would sent a letter if they require that.
**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.**
