Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
Do 8606ís for past years require amended 1040ís?
Posted by: provlima, April 7, 2017 03:14PM

Do 8606ís affect the AGI or taxable income of the years they are filed?

Long story short, While preparing our 2016 return, and filling out the 8606 to reflect our first RMD's, we discovered we had mistakenly not filed 8606ís for 10 years in which they were required.

In an effort to rectify this situation we submitted each of the specific year 8606ís that were required but had failed to submit. We received an acknowledgment for each of the 8606's we sent. Today, three weeks later we received IRS ten forms 8009 informing us that to complete the processing of the 10 8606ís we would have to file ten 1040X amended returns for those respective years dating back to 1997.

What possible purpose would that serve as the non deductible IRA contributions made for those years have no bearing on our taxable income or tax liability for those years??

I do not have copies of my tax forms for those years, how can I get them now?

Thanks for your help in trying to resolve this frustrating issue.

Posted by: Alan S., April 7, 2017 06:13PM
You must have drawn an inexperienced examiner here since a 1040X serves no purpose and the IRS has been accepting these forms for years without a 1040X.

I would just return them with a clear cover letter as if you were sending them in the first time.

That said, technically the IRS could make you amend your 2013, 2014 and 2015 returns IF you took an IRA distribution for those years which were still open years. You would have to apply your reported basis from the cumulative 8606 forms which would reduce the taxable amount of any distributions you took. But perhaps you did NOT take a distribution in any of those years since RMDs had not yet begun.

Note that if you did take a distribution in those years that would apply some of your basis, you would have a little less basis to apply on your 2016 return. The basis on line 14 of each 8606 carries over to line 2 of the following year's 8606.

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