I recently got a letter from the IRS saying I underpaid my 2016 taxes. It looks like they are treating my backdoor roth conversion as taxable income, and now saying i owe an additional 1.6k, roughly. The letter lists these discrepancies:
| shown on return | as corrected by IRS | difference | |
|---|---|---|---|
| retirement income taxable | 0 | 5500 | 5500 |
| shown on return | reported by others | difference | |
|---|---|---|---|
| retirement income taxable | 0 | 5500 | 5500 |
| roth conversion | 5500 | 5500 | 0 |
So...I'm not sure where to look my 2016 forms to see what i did right or wrong. (I filed via turbotax and i think the relevant forms here are forms 1040 and 8606). If the backdoor was the only retirement account activity in my 2016 return, which lines of which forms should reflect this? (like ... line X of form 1040 should show +5500 and line Y should show -5500, or something to that effect?)
Secondly, what's the best way to fix this (if it can be fixed)? Is this something I can easily fix on my own or am I going to have to get help from an accountant?
thanks in advance for any help.
Submitted September 11, 2018 at 12:18AM by backdoor_pro_lapse https://ift.tt/2MfSXzq
