IRS notes that errors on IRA contribution form may cause tax problems

Incorrect information on Form 5498, IRA Contribution Information, may cause taxpayers to make IRA reporting errors on their tax returns, according to the IRS.

Common examples of incorrect information cited by the IRS include: (1) reporting the IRA contribution for the wrong year, (2) failing to report the contribution as a conversion from a traditional IRA to a Roth IRA, and (3) issuing duplicate Forms 5498.

IRA trustees, issuers and custodians can avoid making these common errors by checking the information on Form 5498 before submitting it to the IRS and providing a copy to the client.

Source: IRS Employee Plans News, Issue 2014-15, September 22, 2014.

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