TP can not file 2 separate 8606 forms. Really?

[Y2KEA]

TP has two 8606 forms due to a Roth conversion & an inherited IRA with basis on his 2012 return. IRS says must be paper filed according to Lacerte diagnostics. Anyone else have this problem? Is this due to the new & "improved" Mef system?

[appelman]

I wouldn't be surprised.

TaxAct told me that in order to e-file Form 8275, you now have to complete Part III, whether or not a pass-through entity is involved.

[Snaggletooth]

Never Heard of Such

Actually, I don't know why an 8606 would even be relevant for a Roth, basis or no. Are you sure two 8606 forms are necessary?

[Y2KEA]

[appelman] Don't know what an 8275 has to do with this, [Snaggletooth] but the 8606 form part II on the Roth CONVERSION reports any taxable amount (of which there is none). Tradional IRA was converted shortly after non deductible contribution.

[appelman]

Just a further example...

Of weird things being attributed to MeF.

[Y2KEA]

Of weird things being attributed to MeF.

Tell me about it. So far I have two clients with large NOL's. Due to negative taxable income, IRS says they must paper file because they had withholding on W-2's. And because their resident & non-resident states ride on the fed, those must be paper filed also. "Are we having fun yet?"

[DonPriebe]

Nothing new here

The e-file limitation of one 8606 per taxpayer is NOT new. See Pub 1346 for Tax Year 2011, p. 398. (The pub describes the schema for the legacy system.)

[Gary2]

Independently of the specific 8606 issue, one of the properties of MeF (regardless of how the technology was designed) is that it presents an opportunity for the IRS and states to redefine any and all of their business rules for e-filing. In addition to the IRS delays, if you're seeing any sort of state-level delays this year, part of the reason is that they simply couldn't accept the software engineering reality that releasing a specification in October isn't early enough to get a reasonably bug-free implementation by the end of January.

If the software engineers could run things, then no tax law changes would take effect until 18 months after signing into law Political fantasy, but software reality.