michael.bratt[at]wdn.com (R.*Pile) posted:

- quote -

You have filed correctly. The bank is in error. My advice would be to
contact the bank and request they correct their (bank) records to match
what you ordered and have correctly reported to the IRS. Then, proceed
accordingly with your wishes for the 2008 return and any non-deductible
IRA contributions you plan for 2008 as if the correction were made.

The request to the bank should be in writing, spelling out the facts
(including that you filed a Form 8606 report properly with your 2007
return). My bet is that the bank will promptly issue a corrected
report.

In the unlikely event the bank refuses, you should proceed with your own
plans, in accordance with your own properly filed returns, and keep your
paperwork in case there is ever an inquiry from the IRS.

(Note: I personally had a comparable experience many years ago, and the
IRS sent a "letter of inquiry" about 2 years later. When I added that
document to my previously noted written request, the bank manager for my
branch not only corrected the original error, but provided me a
supporting letter of apology to enclose with my reply to the IRS
"inquiry." This resulted in a notice from IRS that the matter was
closed, and my explanation accepted. It's one of the most satisfying
(tax) experiences available.)

Bill

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An IRA contribution was made in early 2008 as a non-deductible
contribution for 2007. Just found out that the bank mistakenly
credited this contribution to 2008. This will limit the possible
contribution for 2008.

The 2007 tax return was completed with a Form 8606 to report the
supposed non-deductible 2007 contribution. If the bank is unable or
unwilling to correct the error, does the 2007 return need to be
amended to delete the Form 8606? It would then be included, instead,
with the 2008 return.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >