I neglected to file my non deductible IRA contributions on an 8606 for many years ....Is there anything I could do now???

[dmertz]

momrose, this thread is a discussion about Form 8606 Part I and the statement that you quoted is referring only to that part.  You are instead referring to Parts II and III that are required for certain transactions involving Roth IRAs.

[macuser_22]

Yes, conversions and Roth distributions are also reported on a 8606 that is automatic when a conversion is entered into TurboTax.   If the amount converted is all taxable then the 8606 line 16 and 18 will have that amount.     I have never heard of the IRS question a missing 8606 when the entire conversation amount is taxable.

[momrose]

momrose, this thread is a discussion about Form 8606 Part I and the statement that you quoted is referring only to that part.  You are instead referring to Parts II and III that are required for certain transactions involving Roth IRAs.

Well, the entire Form 8606 is titled "Nondeductible IRAs," so the fact that Part II and Part III don't deal with non-deductible contributions means that they are pretty well hidden from someone who might try to figure her own income tax!

That said, I infer that you are saying that I am probably still required to file Form 8606 for those certain Roth IRA transactions: Roth conversions from traditional IRAs and a distribution from a Roth IRA. 

So my question then becomes: If I were to file several Forms 8606 for previous years and fill out only the appropriate Part II and Part III, are you telling me that the $50 penalty likely wouldn't apply because there were no missing nondeductible contributions to report? 

BTW, Thank you to dmertz and macuser_22 for taking the time to think through this stuff with me!  

[dmertz]

It's probably more important that Form 8606 Part II is present if the Roth conversion is reported on the Form 1099-R with code 1 rather than code 2 or code 7 since Part II effectively provides explanation as to why there is no Form 5329 reporting an early-distribution penalty or exception.

[dmertz]

Part III would generally be needed to report any nonqualified Roth IRA distribution, but if the entire distribution was taxable, the IRS probably wouldn't question it because the default is that the entire distribution is taxable.

[macuser_22]

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@momrose wrote:

, are you telling me that the $50 penalty likely wouldn't apply because there were no missing nondeductible contributions to report? 

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You can file the 8606 if you  want but it probably is not necessary.

No, there is no $50 penalty for parts II & III.  The penalty only applies for failing to file part I.

[momrose]

Part III would generally be needed to report any nonqualified Roth IRA distribution, but if the entire distribution was taxable, the IRS probably wouldn't question it because the default is that the entire distribution is taxable.

I had held my Roth IRA for more than 5 years when I took a distribution, and I was older than 59-1/2 so the entire distribution from my Roth IRA was NOT taxable. I would assume that the default for Roth distributions is that they are NON taxable. I just didn't report it anywhere at all in my 2018 federal tax filing. 

[momrose]

You can file the 8606 if you  want but it probably is not necessary.

No, there is no $50 penalty for parts II & III.  The penalty only applies for failing to file part I.

Good news!  Thank you! 

[macuser_22]

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@momrose wrote:

Part III would generally be needed to report any nonqualified Roth IRA distribution, but if the entire distribution was taxable, the IRS probably wouldn't question it because the default is that the entire distribution is taxable.

I had held my Roth IRA for more than 5 years when I took a distribution, and I was older than 59-1/2 so the entire distribution from my Roth IRA was NOT taxable. I would assume that the default for Roth distributions is that they are NON taxable. I just didn't report it anywhere at all in my 2018 federal tax filing. 

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Non-taxable or not the 1099-R is required to be reported on your tax return.    It is the 1099-R that needs to be filed that shows it not taxable.    The IRS can assume that the entire 1099-R box 1 amount was taxable and bill you for the tax.   (But the IRS receives a copy of the 1099-R form the issuer  so they should know it is not taxable.)

HOWEVER, an IRS letter  usually happens within a year or so from filing.   If you have not received a letter form the IRS by now, you probably will not.    I would not amend 2018 now to report it.   If the IRS does send a letter at this late date then a simple phone call to the contact number on the letter and a verbal explanation should take care of it.

[2012]

[1] I have figured out in which years I neglected to have filed Form 8606.  If so, should I just send the payment ($50 per year) along with unfiled Form 8606s from past years, OR should I wait until IRS notifies me the actual amount I owe?  The reason behind my neglect with Form 8606 was rather straightforward, thus not qualifying "reasonable cause" exceptions. 

[2] Would you know the address I need to use to send out the forms?

Thank you in advance.  J

[macuser_22]

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@2012 wrote:

[1] I have figured out in which years I neglected to have filed Form 8606.  If so, should I just send the payment ($50 per year) along with unfiled Form 8606s from past years, OR should I wait until IRS notifies me the actual amount I owe?  The reason behind my neglect with Form 8606 was rather straightforward, thus not qualifying "reasonable cause" exceptions. 

[2] Would you know the address I need to use to send out the forms?

Thank you in advance.  J

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Do not send any payments.   The IRS often does not apply the penalty.

Mail to the same place as a 1040.

https://www.irs.gov/filing/where-to-file-addresses-for-taxpayers-and-tax-professionals-filing-form-1...

[fanfare]

my neighbor reports notices for tax year 2018 asking for payment are arriving in his mailbox now.

[2012]

Hi. Thank you for your comment, which I appreciate very much. 

For one more technical insight here.  When filing delinquent Form 8606, should I use / input the same mailing address existent back in the prior year (as used on Form 1040), OR should I nonetheless provide my current address even if it is different from that used in the past? 

I reason that I should use the address conforming to what I used in the past for each respective year, but on the other hand, I may want to use the current address so that IRS can send me correspondence to my attention timely and correctly if they ever have any issues with my prior Form 8606.  J

[CatinaT1]

Always use your current address.

[2012]

Thank you Catina for taking the time to reply.  On second thought, I tend to agree with you suggestion. Thanks!