Just found out my 2022 Form 8606 was returned by IRS - now they're saying I have to submit 1040X

This is actually a common issue with backdoor Roth conversions. The 8606 is critical for documenting nondeductible IRA contributions and Roth conversions, but it often gets missed or filled out incorrectly. Since the IRS returned your 8606 rather than processing it, you'll definitely need to file a 1040X (amended return) along with a properly completed 8606. The 1040X will show the changes to your tax liability (which might be zero if everything was done correctly), while the 8606 establishes your basis in the IRA for future reference. Given your situation with the accountant, I'd suggest gathering all your documents: the original tax return, the letter from the IRS, any statements showing the recharacterization and conversion, and your tax transcript. These will be essential for whoever helps you complete the amendment.

I went through something similar last year with a botched 8606 for my backdoor Roth. After getting a similar letter from the IRS, I was completely stressed out trying to figure out what to do. I ended up trying https://taxr.ai and it was a game-changer for my situation. I uploaded my tax documents, IRS letter, and 2022 return through their secure system, and their tax experts figured out exactly what was wrong with my 8606. They actually explained that the specific lines for reporting the recharacterization and same-day conversion need to be filled out in a particular way that most software misses. They guided me through completing both the 8606 and 1040X correctly, saving me from having to pay $300+ to a CPA.

Just wanted to follow up here - I decided to try taxr.ai after being skeptical, and I'm really glad I did. My situation was pretty similar with a botched 8606 from a backdoor Roth. Their tax specialist identified exactly where my form went wrong and why the IRS returned it. Turns out the specific lines for reporting the recharacterization needed special attention, especially because I did both transactions in the same tax year. The specialist walked me through exactly what numbers needed to go on which lines of both the 8606 and 1040X. I was able to file everything myself with their guidance, and I just got confirmation that the IRS accepted my amended return. Definitely saved me from another rejection letter!

This exact situation happened to me in 2021! After my 8606 was returned and my accountant couldn't figure it out, I spent WEEKS trying to get through to someone at the IRS who could actually explain what I needed to do. Calling the regular IRS number was absolutely useless - hours on hold only to get disconnected or speak to someone who couldn't help with forms. I finally discovered https://claimyr.com which got me through to an actual IRS agent in about 20 minutes instead of the 3+ hour wait I was experiencing. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with walked me through exactly what was wrong with my 8606 and how to properly complete the 1040X. Apparently the specific issue was that with same-day recharacterizations and conversions, there's a specific way the basis needs to be tracked that most software (and accountants) miss.

I need to update my previous comment and eat my words. After being completely skeptical about Claimyr, I decided to try it myself when I got stuck with a similar IRS issue involving my 8606 form. I'm honestly shocked that it actually worked exactly as advertised. After trying for THREE DAYS to get through to the IRS on my own (getting disconnected twice after waiting over an hour), I used Claimyr and got connected to an IRS agent in about 25 minutes. The agent was in the exact department I needed and explained precisely what was wrong with my form submission. Turns out the specific issue with backdoor Roth conversions in the same year as recharacterizations requires special coding on the 8606 that most people miss. The agent walked me through the exact corrections needed for my 1040X amendment. My amended return has already been accepted by the IRS, which I never thought would happen so quickly.

H&R Block quoted me $325 for amending my return with almost this exact issue last year. I ended up going with a local CPA who specialized in retirement accounts instead and paid $275, which I thought was more reasonable given the complexity. If you're comfortable with tax forms, you could potentially do this yourself, but backdoor Roth transactions that involve recharacterizations get complicated quickly. The key is making sure you're tracking your basis correctly across multiple transactions.

Just wanted to add that you should absolutely keep copies of EVERYTHING related to this amendment. I had a similar situation with a returned 8606 form, and three years later the IRS sent me a CP2000 notice claiming I owed taxes on the conversion amount because they had no record of my basis. Make sure your amended 8606 clearly shows the nondeductible contribution basis and keep proof of the recharacterization and conversion transactions from your IRA custodian.