Form 8606

Forum|Forum|5 years ago
August 21, 2020
1 reply
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I made after-tax contributions to my IRA for 7 years. My old accountant did not file Form 8606 with my Federal taxes. I understand the form can be filed retroactively. Can TurboTax prepare these forms for me for a fee? If so, approximately how much would it cost?

Thank you,

Vincent J. Herman

macuser_22

Alumni - Champ

No. They can only be filled out manually. Note, the there is a $50 penalty for each missed 8606. The IRS can waive the penalty if you provide a reasonable explanation and request a waiver on a letter included with the forms when you mail them.

Each 8606 must be for that tax year.

You can download past years 8606 forms and instructions from the IRS site here:

https://apps.irs.gov/app/picklist/list/priorFormPublication.html;jsessionid=VSgFhrqjzhfgZaqMRe5gdexs.21?value=8606&criteria=formNumber&submitSearch=Find

Mail: https://www.irs.gov/filing/where-to-file-addresses-for-taxpayers-and-tax-professionals-filing-form-1040

**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.**

cfauver

Level 2

I failed to file Form 8606 for a few of the past years including 2020. Is the $50 penalty due for every year, even as recent as 2020 or only 3+ tax years, eg 2018 and before?

And does the IRS require that the penalty check be included when mailing the forgotten Form 8606 forms?

Lastly, can you confirm the address to mail the Form 8606 is the same address I use for mailing my 1040?

JohnW152

Level 15

The $50 penalty is due for each tax year in which you’re required to file Form 8606 to report a nondeductible contribution to a traditional IRA, but fail to do so, unless you can show reasonable cause.

The IRS’ 2021 Instructions for Form 8606 aren’t clear that the penalty should be included, but you could most likely include them without worry. I’d suggest submitting a separate check for each tax year, writing “Form 8606 for Tax Year (enter the appropriate tax year)” in the memo portion of each check.

You’ll need to sign Form 8606, and send it to the IRS at the same place you would otherwise file Form 1040, 1040-SR, or 1040-NR. You can see that address in the Where Do You File? section on the last page of the 2021 Instruction 1040.

@cfauver