Hi All,
I'm getting conflicting information on how to tackle this problem.
Client started making non-deductible contributions to her IRA in 2011. No 8606 was filed in 2011, thus future 8606 forms have incorrect basis. A conversion in 2013 complicates things further (although by some miracle the non-taxable portion of the conversion was calculated correctly - well within $5 anyway).
What's the best way to correct this?
Some people are saying that a corrected 8606 needs to be mailed to the IRS for each year (2011-2016).
Others are saying just correct the basis on the 2017 Form 8606 and do not send in previous year corrected 8606's (but keep good records).
Would love some feedback to determine the best way to handle this situation.
Thank you!
I'm getting conflicting information on how to tackle this problem.
Client started making non-deductible contributions to her IRA in 2011. No 8606 was filed in 2011, thus future 8606 forms have incorrect basis. A conversion in 2013 complicates things further (although by some miracle the non-taxable portion of the conversion was calculated correctly - well within $5 anyway).
What's the best way to correct this?
Some people are saying that a corrected 8606 needs to be mailed to the IRS for each year (2011-2016).
Others are saying just correct the basis on the 2017 Form 8606 and do not send in previous year corrected 8606's (but keep good records).
Would love some feedback to determine the best way to handle this situation.
Thank you!