My client is filing prior Form 8606 that was not reported on prior year Form 1040 do I need to amend those return or I could just file Form 8606 itself.

Forum|Forum|5 years ago
August 18, 2020
8 replies
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George4Tacks

Level 15

8606 can be signed on page 2 and mailed by itself.

Answers are easy. Questions are hard!

BobKamman

Level 15

Make sure to attach the reason for abatement, and make sure not to attach a check.

sjrcpa

Level 15

Bob, there's no penalty computation on an 8606. You may be thinking 5329.

The more I know the more I don’t know.

qbteachmt

Level 15

If anything about the separate 8606 (by year) affects any 1040 that needs to be amended, then it needs to be amended.

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Lord Happy

Level 5

Happy day....nice to find an old issue to re-use. A client receives a 1099-R with code 7 and the IRA box marked. The preparer and....ahem....reviewer...confirmed that it was a conversion, but failed to mark the B5 box on the 1099-R worksheet, resulting in lines 16-18 on the 8606 having no amounts.

When I mark the B5 box, the 8606 correctly populates. There is no change in tax. The instructions for amending the 8606 are not precisely clear for our circumstance. Options:

1. Efile the 1040X with zero tax change and be sure the 8606 is filed with it

2. Sign and mail the 8606.

And so, I ask you, the amazing people of this forum...what is the appropriate course of action?

qbteachmt

Level 15

I would send in the Form 8606 and let the IRS notify the taxpayer of the penalty. Then you might be able to apply for waiver of that penalty.

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