No 8606 filed, amendment required?

[kamckinley]

Hi All,

One of my clients just now mentioned that he did a non-deductible contribution to an IRA for 2013. Since I didn't know about it last year, obviously no 8606 was filed. The client then converted it to a Roth IRA this year, so I beleive I need a correct 2013 Form 8606 to properly report the taxable portion of this year's distribution. Do I have to amend his 2013 tax return to correct this? Or can I just report the correct basis amount on this year's 8606? Thanks in advance!

Kristine

[Roland Slugg]

I wouldn't ask a client to file an amended return for just that. The purpose of F-8606 is to track basis in a person's IRA. When you report the conversion on his 2014 return, just show the basis correctly. If he never contributed to an IRA before, it will be the same as what he contributed in 2013. If he made deductible and N-D contributions in the past, the basis will be only a portion of the amount converted in 2014.

I would prepare a F-8686 for 2013, showing the correct IRA basis, but just place a copy of the form in his file. I would also furnish the client with a copy, in case he changes tax preparers.

[joanmcq]

You can mail in the 8606 on it's own. Has it's own signature lines & everything. No need to amend.

[Possi]

filing 8606 alone

I have the same problem.

New client in 2014, 8606 was properly filed in 2012, but not filed in 2013.

Conversion in 2014 was completely taxed because I was not informed of the 2012 form 8606 and there wasn't one in his 2013 return that I was given for his file.

SOOOOO.....

I file the 2013 form 8606 as a stand-alone form, signed and mailed. THEN, I can amend his 2014 tax return reflecting the correct basis, lowering his tax bill substantially.

Another kick... I see that in 2013, he made a contribution to the TIRA that was not addressed on the return at all. It was not deducted, AND there was no 8606. Am I allowed to add that to the basis on the stand-alone 8606?