IRA Form 8606 - wrong Basis, prev years zeroed

Aug 27, 2013 2 Replies
P

In reviewing our situation for potentially converting a Traditional IRA to a Roth IRA, I went thru and documented all our deductible and non-deductible IRA contributions from 1986 thru 2012, in order to run the Roth IRA online calculators.



I just discovered that our Form 8606 - Non-Deductible for Traditional IRA - has a ZERO prev Basis for 2009, and therefore all years after that are wrong, 2010, 2011, 2012... No other impact on the IRA or 1040 numbers.



I was thinking of just correcting the Form 8606 "previous basis" number when I file for 2013.... It should be around $44k, and is currently showing $30k... Others are stating to file a correct Form 8606 for 2009, 10, 11, & 12.



Since the IRS didn't seem to catch the ZERO, I was thinking of just correcting the Basis for the 2013 Form 8606 filing.



Thoughts ?


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A

There's no such thing as the IRS catching an understatement of basis.

I would submit corrected 8606s for each year they are in error.

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P

And I'd just fix it on the 2013 filing. The 8606 doesn't establish basis, the contributions do. As long as OP can prove up the number on the 2013 form I don't see any sense in doing all that paperwork.

Phil Marti VITA/TCE Volunteer Clarksburg, MD

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