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Failing to fill out Form 8606

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  • Failing to fill out Form 8606

    Hello all,

    I have done the Backdoor Roth conversation via Vanguard for the past three years. I have an accountant that does my taxes and have perused her work and don’t see that form 8606 was completed. When I asked her, she said it wasn’t necessary. What are the consequences of not filling this form?

    thanks in advance

  • #2
    according to google, it is a $50 penalty. your accountant is incorrect that it is "unnecessary." "unlikely to be an issue" is probably a better description.

    I am surprised that she did not recommend solving the problem, as her name is signed as a preparer.

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    • #3
      btw, extremerouge is the rouge extreme because of the depth of color or the amount of coloring applied?

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      • #4
        Originally posted by extremerouge View Post
        Hello all,

        I have done the Backdoor Roth conversation via Vanguard for the past three years. I have an accountant that does my taxes and have perused her work and don’t see that form 8606 was completed. When I asked her, she said it wasn’t necessary. What are the consequences of not filling this form?

        thanks in advance
        The first couple of years that I did backdoor roths I didnt know about 8606. I use Turbotax and they didnt automatically file one either. Then I got a love letter from the IRS stating I owed a bunch of taxes on the money I contributed plus fees. So I filed a correction and supplied them with the forms. All was good after that. Now I make sure to include it as part of Turbotax.

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        • #5
          Originally posted by G View Post
          according to google, it is a $50 penalty. your accountant is incorrect that it is "unnecessary." "unlikely to be an issue" is probably a better description.

          I am surprised that she did not recommend solving the problem, as her name is signed as a preparer.
          Originally posted by hightower View Post

          The first couple of years that I did backdoor roths I didnt know about 8606. I use Turbotax and they didnt automatically file one either. Then I got a love letter from the IRS stating I owed a bunch of taxes on the money I contributed plus fees. So I filed a correction and supplied them with the forms. All was good after that. Now I make sure to include it as part of Turbotax.



          Thank you both!

          how much Hightower did that end up costing you?

          as far as the username, in undergrad I had a chemistry lab partner that was a redhead so 13 years ago when I first joined some forum, I picked that as the name and have used it since...Weird I know but that’s what it is...

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          • #6
            Originally posted by extremerouge View Post

            as far as the username, in undergrad I had a chemistry lab partner that was a redhead so 13 years ago when I first joined some forum, I picked that as the name and have used it since...Weird I know but that’s what it is...
            Love the backstory - always enjoy reading!
            Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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