Reply To: Can 8606 be prepared differently and be acceptable to the IRS?

Home Fairmark Forum Retirement Savings and Benefits Can 8606 be prepared differently and be acceptable to the IRS? Reply To: Can 8606 be prepared differently and be acceptable to the IRS?

#5230
Alan S.
Participant

This option is used by several tax programs, and it submits the worksheet to the IRS replacing lines 6-12 of Form 8606. No one is reporting a problem with errors as the IRS has obviously approved this format. It appears that your entries are all correct.

You have the advantage of knowing the correct Form 8606 standard outcome and lines 16-18 are the same as expected.

This programming approach has been around for several years, but more tax software vendors seem to be incorporating it. Essentially, it uses the worksheet for all TIRA distributions with basis but it is really only necessary in certain situations. For a back door Roth where your contribution will be 100% non deductible it has no effect, which is why your 8606 came out the same as the worksheet version.