Thank you for this, because this is essentially the same situation I am in. But see, Alan's response makes it more confusing, because he DOES recommend filing a 1040x amended return with corrected 8606 in this instance.I really do think the issue originates with the IRS and the software, not the preparer. For example, I was helping a CPA wrestle with his software to get 8606 to report the Roth conversion. I forget the software (Lacerte? Drake? one of those). But it was maddening and neither of us could figure it out (in my defense I had never used that program). The software was reporting the conversion correctly on the 1040 but he/we couldn't seem to get the numbers to appear on the 8606. He gave up, filed the return as is. That was about 4 years ago.But it is annoying that professional tax preparers cannot get this right.
So I think professional preparers have likely never once had to "fix" this mistake. No audits, no IRS letters, no new clients coming to them needing amendments for this issue. It's a problem that doesn't seem to require a solution. So neither the tax preparers nor the software companies care about it. It's analogous perhaps to how non-deductible contributions and conversions can be reported two different ways in the 8606, one by following the form instructions or two by following worksheet 1-1 in 590-B. But if the latter, the form 8606 instructions printed line item directions make no sense.
For what it's worth, here is Alan S.'s response to a similar situation reported on another forum:
https://irahelp.com/forum-post/74384-fo ... onversion/but it’s not clear to what extent the IRS uses Form 8606 to track conversion amounts and years
Statistics: Posted by We're wolves — Mon Mar 18, 2024 8:04 pm — Replies 7 — Views 413