An IRA contribution was made in early 2008 as a non-deductible contribution for 2007. Just found out that the bank mistakenly credited this contribution to 2008. This will limit the possible contribution for 2008.
The 2007 tax return was completed with a Form 8606 to report the supposed non-deductible 2007 contribution. If the bank is unable or unwilling to correct the error, does the 2007 return need to be amended to delete the Form 8606? It would then be included, instead, with the 2008 return.
You have filed correctly. The bank is in error. My advice would be to contact the bank and request they correct their (bank) records to match what you ordered and have correctly reported to the IRS. Then, proceed accordingly with your wishes for the 2008 return and any non-deductible IRA contributions you plan for 2008 as if the correction were made.
The request to the bank should be in writing, spelling out the facts (including that you filed a Form 8606 report properly with your 2007 return). My bet is that the bank will promptly issue a corrected report.
In the unlikely event the bank refuses, you should proceed with your own plans, in accordance with your own properly filed returns, and keep your paperwork in case there is ever an inquiry from the IRS.
(Note: I personally had a comparable experience many years ago, and the IRS sent a "letter of inquiry" about 2 years later. When I added that document to my previously noted written request, the bank manager for my branch not only corrected the original error, but provided me a supporting letter of apology to enclose with my reply to the IRS "inquiry." This resulted in a notice from IRS that the matter was closed, and my explanation accepted. It's one of the most satisfying (tax) experiences available.)
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.