Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0

I have been contributing to an IRA account for several years now. The
first few years, my contributions have all been deductable and in 1994,
my contributions became part deductable and part non. In that year, I
never filed an 8606 Form. I have filed an 8606 form for every year since.
How do I fix the basis for this year's 8606 Form? Is there a penalty for
not filing the 8606 for the 1994 Tax Year? Do I need to file an
amendment for the 1994 tax year for this?

Thanks very much
Print the post Back To Top
No. of Recommendations: 0
<<I have been contributing to an IRA account for several years now. The first few years, my contributions have all been deductable and in 1994, my contributions became part deductable and part non. In that year, I never filed an 8606 Form. I have filed an 8606 form for every year since. How do I fix the basis for this year's 8606 Form? Is there a penalty for not filing the 8606 for the 1994 Tax Year? Do I need to file an amendment for the 1994 tax year for this?>>

There's a $50 penalty for failure to file this form. I have no idea whether the IRS would try to collect the penalty at this late date. One approach would be to amend 1994; another would be to simply include the 1994 basis in any Form 8606 filed after the mistake was discovered. If it were my return, I would choose the latter.

KAT in Chicagoland
http://www.fairmark.com
Tax Guide for Investors
Includes the latest information on
Roth IRA technical corrections
Print the post Back To Top
Advertisement