Is it required to figure the non-deductible basis when calculating the tax on an IRA distribution on Federal Form 8606?

[davidwaldron]

In other words, if I need to show more income, can I postpone some or all of the basis to the next tax year in order to get to a higher taxable amount this year?

[Critter · Accepted solution]

Legally you cannot do that... if you have a basis a form 8606 is required to be used. 

[dmertz · Accepted solution]

Beyond being the filing of an inaccurate and fraudulent tax return, reporting lower than actual basis in nondeductible traditional IRA contributions would result in the unreported basis being permanently lost, no longer available to be used to reduce the taxable amount of future distributions; you cannot just magically make the basis reappear at some later time.