Amended Form 8606

[KREC]

Apologize for not being more clear. this particular case, I take the first year (we’ll call it year 1) where I can actually compare a 1040 to a 5498 confirming that a IRA contribution was made and subsequently treated as nondeductible on the return. The following year (year 2), I have a 5498 showing a contribution was made, but I am unable to verify whether it was treated as deductible or not on the return because I do not have access to a 1040 for that year (tax year is too long ago to get a transcript). Consequently, I’m assuming I treat year 2  as a “lost” year (no 8606 can be created without knowing if the contribution was deducted or not). I then take the amount from line 14 of the 8606 from year 1 and put on an 8606 for year 3. Year 2 basically ends up being treated as lost  with no 8606 correct? 

[dmertz]

Correct.

[KREC]

For the first year that I have an 8606 (2007) and 1040, when comparing the entry on 8606 to:

1. the TIRA 5498 showing both TIRA contribution box 1

2. and the ROTH recharecterizarion in box 4, 

the original 8606 had a completely different number. No deductions were taken on that return. Should I use the 5498 box 1 and box 4 numbers to accurately document  box 1 on 8606? Assume the 1040 and 5498 combined serve as my source documents for fixing the 8606. 

[dmertz]

"Should I use the 5498 box 1 and box 4 numbers to accurately document  box 1 on 8606?"

Probably not quite.  The amount in box 4 represents the gain/loss adjusted amount transferred to the traditional IRA, not the amount of contribution recharacterized.  You would need to look at the Form 5498 from the Roth IRA to see how much the original contribution to the Roth IRA was.  If that entire Roth IRA contribution was recharacterized, the amount of traditional IRA contributions was the sum of the contribution amounts from both of these Forms 5498.

[KREC]

Yes sorry meant to say use box 1 from the TIRA 5498 and box 10 from the Roth to get the total for line 1 of 8606. I have a 1099R also confirming the non taxable distribution from that year for the Roth recharacterization to TIRA.

[dmertz]

Yes, sorry, I meant box 10 of the Form 5498 from the Roth IRA.  I've modified my previous post.

[KREC]

Thanks!

[KREC]

It's likely that those two years that are missing (2008 and 2010) and a couple years prior to 2007 did have an 8606 filed (I have 5498s so there were definitely contributions in those years), but since I don't have access to the returns, I can't amend those or include the contributions for those two years without knowing if they were deducted or not.

1. do I just explain that in a cover letter, stating that I am amending the following years 2007, 2009, 2011-2014 and that two intervening years (2008 and 2010) and anything prior to 2007, I cannot amend due to lack of a copy of the return?

2.Do I fill out anything for 2008 and 2010 to show the carryover or from the year prior or do I just skip over them? 

I haven't made any additional contributions or any distributions since 2014 so that form in the stack will serve as the most current for basis.

[dmertz]

Those actions sound reasonable to me.  Skip the years where nothing changes.