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

[Critter]

You do NOT send in a 1040X for this correction ... the form 8606 can be filed by itself as a stand alone form ... make sure to sign it.

[69VanNuys]

Macuser_22,

Thanks for all your advice and support of the community.

What are your thoughts about a situation where no 8606 have been filed for ten years.  No deductions have been made.  No distributions have been made.   IRA Traditional and Roth IRA exist.   Prepared to file all back 8606 for each year.   The question is where to start and how to calculate basis in 2019?   If the prior year 8606 forms were not completed, what basis to use on line 2 of the 2019 form?

Thanks! 

[macuser_22]

@69VanNuys  - Start with the first year that there was a non deductible contribution and fill out a 8606 form for THAT year with the non-deductible contribution on line 1.   The amount on line 14 will carry to line 2 of the next years 8606 and will be added to that years line 1 contribution.   Repeat for each year that there was a non-deductible contribution until current.

You can download past years 8606 forms (and instructions) from the IRS here:

https://apps.irs.gov/app/picklist/list/priorFormPublication.html;jsessionid=UhFuCo825izp8Rd2WZrf0tV4...

Mail the 8606 forms to the IRS:

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

[macuser_22]

@69VanNuys - The above answer assumes that there were no distributions from any Traditional, SEP or SIMPLE IRA at any time after the first non-deductible contribution or that would need to be accounted for and would make the 8606 much more complicated.

[69VanNuys]

Thank you!  Starting from year one is the only way I could figure to do it, u less someone had an idea about doing someone in 2019.  

[macuser_22]

Each year must be reported on the 8606 for  that year of the IRS will disallow any use of the non-deductible contribution on a distribution.   Line 14 on  the last filed 8606 can only come from  the previous 8606 form.  They cannot be combined.

Note that the IRS "could" assess a $50 penalty for each missed 8606 form.

[fanfare]

From 2017  IRS  Pub 590A

"Failure to report nondeductible contributions. If you
don’t report nondeductible contributions, all of the contributions
to your traditional IRA will be treated like deductible
contributions when withdrawn. All distributions from
your IRA will be taxed unless you can show, with satisfactory
evidence, that nondeductible contributions were

made."

[Mikellekim]

If I should start a new post just let me know. But my situation is very similar.  I had non-deductible contributions 2 years only.

In 2009 I filed form 8606. No problem.

In 2010 I filed form 8606, but neglected to list and add the basis from the 2009 form.  I used TurboTax both years, so I'm not sure why TT didn't bring it forward automatically.  A bug perhaps?

Now in 2019 I've taken my first ever distribution from a traditional IRA (a rollover IRA that used to be my 401k), so I need my correct basis.  I assume that I need to file an amended 8606 for 2010 (using that year's form) and a letter of explanation.  I am hoping that nothing more will come of it.  Financially it doesn't make sense to pay penalties to recover the basis from 2009 - it's a small enough amount that paying taxes on that amount again would probably be cheaper than a penalty.

My first question then is, if I file an amended 8606, can I expect to get a free pass, or a fine?  And if it's a fine, can I just use the (too small) basis from the 2010 form without getting a fine?

Thank you.

[macuser_22]

---

@Mikellekim wrote:

If I should start a new post just let me know. But my situation is very similar.  I had non-deductible contributions 2 years only.

In 2009 I filed form 8606. No problem.

In 2010 I filed form 8606, but neglected to list and add the basis from the 2009 form.  I used TurboTax both years, so I'm not sure why TT didn't bring it forward automatically.  A bug perhaps?

Now in 2019 I've taken my first ever distribution from a traditional IRA (a rollover IRA that used to be my 401k), so I need my correct basis.  I assume that I need to file an amended 8606 for 2010 (using that year's form) and a letter of explanation.  I am hoping that nothing more will come of it.  Financially it doesn't make sense to pay penalties to recover the basis from 2009 - it's a small enough amount that paying taxes on that amount again would probably be cheaper than a penalty.

My first question then is, if I file an amended 8606, can I expect to get a free pass, or a fine?  And if it's a fine, can I just use the (too small) basis from the 2010 form without getting a fine?

Thank you.

---

If you mean amending the 2010 8606 to add the 2009 carry forward basis to that the total of both will carry forward, then I do not believe that there would be any penalty at all for amending a prior filed 8606.  The only penalty that I know of is the failure to file a 8606 at all but you did file one.

[Mikellekim]

That was what I assumed (and hoped).  Thanks for the reply.

[Rithc04]

I have submitted  8606 for year 1995 last August 2019. How do I know that IRS receive my letter? 

Should I resend the same 1995 form (with signature) and include it in my 2019 tax return this year? 

Please advise 

[macuser_22]

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@Rithc04 wrote:

I have submitted  8606 for year 1995 last August 2019. How do I know that IRS receive my letter? 

Should I resend the same 1995 form (with signature) and include it in my 2019 tax return this year? 

Please advise 

---

The IRS never acknowledges 8606 forms.  The only way to ever know if the IRS actually receives ANY mail that you send is by mailing certified with return receipt or other tracking service.

Only submit a 2019 8606 with a 2019 tax return.   Earlier years must be mailed in a separate envelop.

[AG2020]

Hi,

I read through the conversation but not clear for my situation so hoping somebody can help!

Made non-deductible contribution to traditional IRA for tax year 2011. Since then no distribution , no additional non-deductible contributions and no Roth conversions. At the time CPA forgot to file 8606. I do my own taxes now via Turbotax.  What do I need to do now? Is it necessary to file 8606 for 2011?

Thanks!

[macuser_22]

---

@AG2020 wrote:

Hi,

I read through the conversation but not clear for my situation so hoping somebody can help!

Made non-deductible contribution to traditional IRA for tax year 2011. Since then no distribution , no additional non-deductible contributions and no Roth conversions. At the time CPA forgot to file 8606. I do my own taxes now via Turbotax.  What do I need to do now? Is it necessary to file 8606 for 2011?

Thanks!

---

Yes.   Without a 8606 you will loose the ability to be able to use the 2011 non -deductible contribution to help offset tax liability.

You can download the 2011 8606 here:

https://www.irs.gov/pub/irs-prior/f8606--2011.pdf

https://www.irs.gov/pub/irs-prior/i8606--2011.pdf

You  can attach a request to waive the $50 penalty for failing to file the 8606 when due.

[AG2020]

Thank you! I see that my CPA might have filed 8606 for 2012 return including 2011 contribution. Do I still need to file 8606 for 2011?