The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/ltlti-have-been-contributing-to-an-ira-account-10157113.aspx

Subject:  Re: 8606 FORM Question Date:  4/18/1998  1:23 PM
Author:  KATinChicagoland Number:  3580 of 121258

<<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

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us