Filing 8606’s

Submitted by Michael Cangelosi on Tue, 2020-11-10 17:28

When you file backdated 8606’s with the IRS to correct your after-tax IRA contributions, should you receive an acknowledgment of any sort from the IRS?
I realized after i mailed my 8606’s that I missed 2 years of prior contributions (non deductible) and that my basis that I sent is off by $5200 and thus ALL years including 2019 is off. How long should i wait before sending in the “newest” corrected set, im hoping this will not throw off the IRS when i send the newer corrected ones.
Thanks
Mike



Submitted by Alan - IRA critic on Tue, 2020-11-10 18:15

  • You will not receive any acknowledgement from the IRS. What is interesting, after many years of addressing forum posted questions on Form 8606, I have never seen anyone indicate that the IRS has an issue with their numbers. That leads me to think that the IRS has no effective administrative plan to examine the validity of any particular 8606 older than that of the current tax year. Taxpayers make frequent errors in not only omitting 8606 forms, but filing them several years after the contribution, yet the IRS has no questions on any of these? Makes me wonder if they don’t simply file them all in a box and send the boxes down to storage on K St. 🙂
  • I would send in your revised forms ASAP, marking each one as revised. Hopefully, you have not taken any distributions in still open tax years that would require an amended return.  Otherwise, I expect that your tax file has never been updated to reflect the forms you filed earlier. Obviously, you will need to amend all 8606 forms that you filed after an earlier year you are now updating.

Submitted by Michael Cangelosi on Tue, 2020-11-10 18:19

Thank you,   I have not taken any distributions as of yet, although I am planning a Roth conversion on the after-tax basis soon, and potentially some pre-tax $$ up to my tax bracket but thats not decided yet.  I’ll get the revised forms sent asap.  Thanks. 

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