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At a minimum, taxpayers who fail or forget to file Form 8606 should expect to receive an inquiry from the IRS, asking them to explain and verify their nondeductible contributions. Avoiding such an inquiry or an audit is a good reason to file the form.
Form 8606 is a critical tax form to fill out if you have Individual Retirement Accounts, or IRAs. It reports and tracks the rollover eligibility of after-tax assets from these retirement plans.
The taxpayers address at the top of Form 8606 Nondeductible IRAs, as well as the preparer information at the bottom of the form, are only used if the form is filed separately from the taxpayers return. As a result, this information does not automatically populate in TaxAct.
Can IRS Form 8606 be e-filed? You can e-file Form 8606 with the rest of your annual tax return when you e-file your 1040 and any other tax forms, along with any payments due.
Use Form 8606 to report: Nondeductible contributions you made to traditional IRAs. Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs. Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.

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If you arent required to file an income tax return but are required to file Form 8606, sign Form 8606 and send it to the IRS at the same time and place you would otherwise file Form 1040, 1040-SR, or 1040-NR. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form.
Here you will complete the following if applicable: Total basis in traditional IRAs. List any contributions that were made between January and April 15th before the return due date. Total value all your traditional, SEP, and SIMPLE IRAs as of December of the tax year. Any outstanding rollovers.