@geraniums9999 wrote:
I plan to call Turbo Tax and maybe the IRS today as I am was concerned before and am very concerned. For regular IRAS I see that Turbo Tax carries forward a reduced basis figure from last year's 8606 but the IRS instructions are different from what Turbo Tax does. The IRS 8606 instruction book refers each year to the last 8606 you filed for Line 2 I think it is. So I may have several years
of incorrect reporting. I even called the IRS last year and they said the basis does not change. If there is anyone else that can speak to the IRS instructions which are online and what Turbo Tax does,please let me know soon.
The transferred basis comes from the prior years "IRA Information Worksheet" line 3 (year end basis) which would come from that years 8606 form line 14 if a 8606 was required for that year. If no change in basis for a year then the carried forward basis form the prior year line 12 and line 3 will be the same.
An incorrect 8606 will make all following 8606 forms also incorrect. Unless there is a change in basis the last filed 8606 remains in effect.
What do you think that TurboTax does different from the 8606 instructions?
**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.**
