[quote=ucodegen]
The cumulative deductible and non deductible contribs are also reported to IRS by brokerage. [/quote]
No, they aren’t. Ever. Brokers have no way of knowing whether you’ve deducted IRA contributions. So no, it’s not possible. They do report FMV, on form 5398, due in May each year.
[quote=ucodegen]
While your have to do your schedule-D with your calc’d basis, and manage carry-over losses, records of types of IRA contribs(post vs pre tax) etc, the IRS now runs a shadow record on incomes near $100,000/yr and up to ensure tax compliance on higher income individuals. I had the IRS correct me on a stock basis, the only way the IRS could have known was to have the record of stock transaction when I bought it a few years earlier [/quote]
IRA distributions aren’t reported on Sched D. Ever. IRS requirements for brokerages recently (maybe 4 years ago) increased to require reporting of basis of securities which are sold in non-retirement accounts. The IRS does not keep the info of your purchases every year. Brokers report the basis (if available) of what you sold every year. This has nothing to do with IRA distributions.
The IRS runs matching programs on all returns, irrespective of income. If income that was reported on 1099’s or W-2’s or other income/deduction reporting isn’t consistent with what was reported on returns, correction letters are issued if the amount is sufficient. They’ve been doing this for decades. This also has nothing to do with recovering non-deductible IRA contributions.
