IRS returned my 2022 Form 8606 - now they want 1040X for backdoor Roth conversion

So I made things complicated with my Roth IRA in 2022. What happened was I contributed the max to my Roth automatically, then realized my income was too high to qualify. I had to recharacterize everything to a Traditional IRA (which had zero balance before this), then did a backdoor Roth conversion that same day. When tax time came, my accountant filed everything through TurboTax but for whatever reason couldn't generate the Form 8606 through the software. I ended up filling out the 8606 myself and mailed it directly to the IRS. Well, I just checked my mail from last year and discovered the IRS sent me a letter saying they returned my 8606 and I need to file an amended return via Form 1040X. The letter is almost a year old at this point! To make everything worse, I just found out my accountant passed away unexpectedly. I'm completely lost on how to proceed now. Should I just go to H&R Block to handle this? Does anyone know roughly what they charge for dealing with amended returns involving IRA conversions? I do have my 2022 tax transcript available. Any suggestions would be greatly appreciated!

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18 comments

Oliver Schmidt

•8M

The good news is this is fixable! When you do a backdoor Roth, Form 8606 is absolutely essential as it documents the non-deductible contribution to your Traditional IRA and the subsequent conversion to Roth. The IRS likely returned it because it was submitted separately from your original return. For your situation, you'll need to file Form 1040X (amended return) and include a properly completed Form 8606. The 8606 should show your non-deductible contribution to the Traditional IRA and the conversion to Roth. This ensures you won't be taxed twice on that money. Since your accountant passed away (sorry to hear that), I'd recommend gathering all your documents: the original tax return, IRA contribution statements, recharacterization paperwork, and conversion confirmation. These will be essential for whoever helps you file the amendment.

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Oliver Schmidt

•8M

You can file Form 1040X either electronically or by mail, though electronic filing is typically faster. Most tax professionals can file it electronically for you. As for deadlines, you generally have three years from the original due date of the return to file an amendment, so you're still well within that timeframe for a 2022 return. The IRS typically doesn't issue penalties just for filing an amended return, especially when you're responding to their request. The sooner you handle this, the better, but you shouldn't face additional penalties solely because of the delay in responding to their letter.

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Natasha Volkov

•8M

I had a similar issue with my backdoor Roth last year and discovered taxr.ai (https://taxr.ai) which literally saved me hours of headache. They specialize in analyzing tax documents like your IRS letter and can help determine exactly what you need to file for your Form 8606 situation. I uploaded my documents, answered a few questions about my backdoor Roth conversion, and got clear guidance on how to properly complete Form 8606 and file my 1040X. They even explained which sections of the 8606 were likely incorrect that caused the IRS to return it in the first place.

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Natasha Volkov

•8M

They don't complete the forms for you, but they analyze your documents and provide detailed guidance on exactly what needs to be filled in each section. For my backdoor Roth issue, they highlighted the specific lines on Form 8606 that were causing problems and explained the correct way to report the conversion. These guys actually specialize in complex scenarios like backdoor Roths and recharacterizations. Their system is built by tax pros who understand these niche situations. I was surprised too, but they identified exactly where my reporting was wrong and saved me from another rejection letter. Way cheaper than the $300+ my previous accountant charged me just to mess it up.

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Javier Torres

•8M

Just wanted to update that I tried taxr.ai for my similar backdoor Roth situation and it was incredibly helpful! I was worried because my situation had both a recharacterization and conversion like yours. The system identified that I needed to complete Part I and Part II of Form 8606 and gave specific guidance on what values to enter. It explained that the common mistake is forgetting to properly track the non-deductible basis, which is probably why your form was returned. Took me about 20 minutes to get everything sorted and now I'm confident my amended return will be processed correctly. Definitely worth checking out if you're still figuring this out!

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QuantumLeap

•8M

If you're still having trouble getting answers from the IRS about your 8606 form, I'd recommend trying Claimyr (https://claimyr.com). I was in IRS limbo for months after my amended return and couldn't get through on the phone. Their service got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It was honestly shocking how fast I got through. The IRS agent was able to look up my case, confirm exactly why my form was rejected, and tell me precisely what I needed to include with my 1040X. Saved me from potentially filing the wrong thing again.

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QuantumLeap

•8M

They don't call for you - they basically hold your place in line and call you when they've got an IRS agent on the other end. Their system knows how to navigate the IRS phone tree and stays on hold so you don't have to. You definitely could keep calling yourself, but the IRS wait times are insane right now (especially for tax accounts department that handles 8606 issues). I tried calling five separate times before giving up - waited over an hour each time and never got through. With Claimyr I was talking to an actual IRS representative in about 15 minutes after I submitted my request.

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Emma Wilson

•8M

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it for my own IRS issue with Form 8606. I was absolutely floored when I got a call back in about 20 minutes with an actual IRS agent on the line. The agent confirmed that my 8606 was rejected for the same reason others mentioned - I had submitted it separately rather than with a 1040X, and there were inconsistencies between the values on my original return and the 8606. She walked me through exactly what I needed to do, which specific boxes needed to be completed on both forms, and even noted in my account that I would be submitting an amendment so it would be properly handled. For anyone dealing with 8606 rejections, definitely worth the money to actually speak with someone who can help rather than guessing what the IRS wants.

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Isabella Santos

•8M

H&R Block will charge you around $150-200 for a 1040X with a Form 8606, but honestly they're not great with backdoor Roth conversions in my experience. I went to them last year for almost the identical situation and the preparer had to call a specialist because she'd never handled one before. You might be better off finding a CPA who specializes in retirement accounts. Ask specifically if they're familiar with backdoor Roth conversions and Form 8606 reporting before you commit.

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Isabella Santos

•8M

I'd recommend searching for a CPA who specializes in "individual tax planning" or "retirement tax planning" specifically. There's no special certification just for retirement accounts, but you want someone who regularly handles them. When you contact them, ask these specific questions: 1) How many backdoor Roth conversions do you handle annually? 2) Are you familiar with filling out Form 8606 for both non-deductible contributions and Roth conversions? Any CPA who hesitates on those questions probably isn't the right fit. The American Institute of CPAs (AICPA) website has a "Find a CPA" feature that lets you search by specialty, which could be a good starting point.

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