For future reference, after more digging around, it appears 'delinquent' in the tax world means even when you submitted the form but did not submit it correctly it may still be considered delinquent as if you never submitted it originally? One of the tax experts can correct me if that is correct.
Within TurboTax (TT) 2020 and years before (at least to 2013), even though I made Traditional IRA deposits, they were not deductible due to my income. Unfortunately, TT does not appear intuitive enough to know this and then automatically select 'Yes' on the "Any Nondeductible Contributions" screen or carry that amount of non-deductible contribution to your IRA Basis. It could be that TT doesn't know the contributions are non-deductible at this point as well. But you'd think it would be caught in the review.... Go figure... Unfortunately, I did not know this going back to 2013 when I first making deposits into my traditional IRA.
What I did, was as Coleen thankfully advised. I downloaded the Form 8606 forms for each of the year's I made non-deductible contributions to my IRA starting with 2014 and would have reported an increasing Total basis amount due to the previous year's non-deductible contributions. 2013 was the first year I made non-deductible contributions and did have the correct basis amount on the IRA worksheet. It appears that the form 8606 was introduced in 2014.
When fixing my 8606 forms. For 2014, I entered the amount of my non-deductible contributions in 2014 on Line 1, then on Line 2, that is the Total Basis (of non-deductible contributions) from the Previous year(s). For example, in 2014 Form 8606, Line: $1,000; Line 2: $3,000, then Line 3 would be $4,000 and becomes line 2 on my corrected 2015 Form 8606. For 2015, Line 1: $1,000; Line 2: $4,000, Line 3: $5,000 and so on until I got to 2020. Thankfully, I did not have to worry or enter any amount in lines 4 -13. Thus, Line 3 became Line 14.
Then after fixing my 8606 Forms through 2019 and obtaining the correct Total Basis, I opened TT 2020 program, and entered my total 2020 Traditional IRA contributions as requested. Then made sure I selected 'Yes', when it asked about nondeductible contributions. That brought up the entry box that allowed me to enter my Total Basis as of Dec 31, 2019. When I looked at the Form 8606 that TT generated, it had my 2020 Nondeductible contributions on Line 1, my Total Basis from 2019 on Line 2, and then the new Basis on Line 3 (also carried to Line 14), which will become Line 2 in 2021.
When I sent in my corrected Form 8606s, I did not send in a checks. If you did not submit a Form 8606, then you do owe a penalty of $50 for each year. Because I did submit the 8606s in their respective year's, but with missing info, I understood based on reading that I did not have to pay the fine. But this could go back to the understanding of 'delinquent'. I did send an accompanying letter with my revised 8606 form detailing why the changes were made.
Hopefully, this is correctly explained. It took some time to figure out and the steps I took were correct.
