2010 IRA/ROTH Conversion

[jlewis]

Have a friend/neighbor that wants me to help them amend their 2012 return for an unrelated item but fessed up they did a Roth conversion in 2010 to split income into 2011 & 2012. Turns out when they did 2011 on Turbo, they didn't report the income as required, don't know how Turbo works or if it was supposed to carry over for returning user. Now they are unsure about opening up bigger problem. My advise was to correct it. Just wondering how IRS missed this & what chances are they still may discover it, I think chances are still fairly good. Any one else have some thoughts or experience with this?

[Yardley CPA]

I had a client who had a Roth conversion and we split the income into 2011 and 2012. I can't imagine the IRS won't come knocking at some point, I think the best course of action is to amend and correct the issue. Why wouldn't they want to do that???

[Pacun]

You should amend or the IRS might nail them when they withdraw the money.

[jasdlm]

I had a client do a 2010 ROTH conversion using Turbo Tax. CP2000 for 2011 return, which I amended, and I did 2012 return. If there was a 1099R (which there should have been), I can't see how the IRS won't eventually catch it. I would amend.

[jlewis]

Yes, I strongly advised her to amend before the notice arrives and I would amend returns if

she wanted me to, waiting for her decision. I'll give it a few more days and recommend again.I really thought IRS would have at least jumped on the 2011 by now anyway.

Thanks for all your replies.