Incorrectly Reported Traditional IRA as Roth IRA

[jessigy]

I accidentally reported my traditional IRA as a roth IRA on several tax returns. However, they are over 5 years ago and I understand it the IRS will not accept amended tax returns anymore. What options do I have to avoid paying taxes again when I withdraw the money from my traditional IRA?

[FangxiaL]

If you reported the regular IRA contributions as Roth IRA, likely you never took any deductions on your taxes. This means you have a nondeductible basis in your traditional IRA. You can prepare Form 8606 for those years you made a contribution and file the form by itself. Provide an explanation of why the 8606 forms were not filed with the returns and ask for penalty relief. You should not be penalized for innocent mistakes. The IRS will always accept amended returns, but you are not getting any refund if it results from amendments.  

You may consider converting the IRA into Roth IRA provided the tax on the earnings is affordable.

Here is a link to all prior years' 8606 forms.

[fanfare]

"What options do I have to avoid paying taxes again when I withdraw the money from my traditional IRA?"

file correct forms 8606 to report your non-deductible contributions.

you will pay less  tax but it will be on a prorated basis until you empty out your IRA.