Income Tax filing of Roth Info

Anytime a company has to submit a tax form for a person for example a W-2, 1099, 1098, or any of the forms related to retirement accounts, you can expect that at some point in the near future the IRS will attempt to match it with the items you have referenced on your 1040 form.

So when your 401(k) conversion is reported then the IRS will notice the issue. What they do will depend on the direction of the mistake, and if they decide that the mistake was an attempt to hide income. So if you know you made a mistake you should make the correction and submit the 1040-X and any other required documents.

If your mistake means that you didn't pay all your required taxes and the IRS discovers the issue, then in your best case they will hit you with only the new amount you owe. In a worse case they will also add on taxes and penalties. Of course if they view it as fraud then they will could decide to audit your entire return.

The smallest impact is to make the correction quickly. Though if you just submitted your taxes yesterday you should wait for them to work their way through the original submission. You do have some seaway this year because the deadline isn't until 15 July, which means you can still make the correction before the deadline and avoid all interest and penalties.

If you wait for the IRS they probably won't discover it until after the deadline.