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bocenters
New Member

I just realized I haven't reported my Fair Market Value on my IRA for the last three years how do I do that?

 
2 Replies
Critter
Level 15

I just realized I haven't reported my Fair Market Value on my IRA for the last three years how do I do that?

On an income tax return only distributions and contributions to an IRA are reported ... the FMV is not needed unless you need to file a form 8606 to report basis on a distribution and if so the program would have requested that entry.  

dmertz
Level 15

I just realized I haven't reported my Fair Market Value on my IRA for the last three years how do I do that?

Unfortunately, when TurboTax prepares Form 8606 Part I in regard to a traditional IRA distribution, TurboTax does not enforce the requirement to enter the year-end balance in traditional IRAs and it's all too easy to bypass the question that asks for it.  TurboTax simply treats the missing value as zero, producing an inaccurate tax return when the true value is not zero.  Requests that TurboTax flag as an error any missing year end balance when the balance is required for the calculation, even if the balance is zero, have been ignored.  Erroneous calculations based on a missing year-end value are deemed to be user error.

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