Failure to file 8606 form for 2021,2022 years

[kckoo84]

Hi, 

My wife and I did T-IRA -> Roth conversion(Back door conversion) in 2021 and 2022 tax year but due to my ignorance We (joint filling) didn't file 8606 form with my 2021, 2022 tax return and just realized that I had to do it.

In this case, I'm looking for what is my options to minimize any potential penalty.

FYI, my Roth IRA account is net loss.. at this moment.

1. Is late filing of 8606 okay ? Are they any penalties ?

2. Is re-charcterization of 2021 and 2022 Roth conversion back to TIRA possible now ? Are their penalties?

Any advices would be welcomed

[AnnetteB6 · Accepted solution]

You can file the Form 8606 on its own.  There may be a penalty associated with it, but not if you can show just cause for not filing it with your returns.

Take a look at the following TurboTax help article for more details about how to file the Form 8606.  The information is in the link for If your conversion contains contributions made for 2023 in 2022 toward the bottom of the article.  The possible penalty for filing Form 8606 is also discussed there.

How do I enter a backdoor Roth IRA conversion?
 

As for recharacterizing the Roth IRA conversion back to Traditional IRA, as of 2018 due to the Tax Cuts and Jobs Act, that is no longer allowed.  You may recharacterize a Roth IRA contribution, but not a conversion.

See the following IRS FAQ for more information:

IRA FAQs