I believe there is a statement required. But is form 8606 required or is that required in 2021?
See page 6 of instructions for 5329 https://www.irs.gov/pub/irs-pdf/i5329.pdf
Don't report anything anywhere. No statement required. A 5498 will be issued in 2022 to show the rollover in 2021.
P.S. 8606 is for IRA (different animal than Roth IRA)
Is the IRA going to be deductible in 2021? Is this the beginning of a poorly done backdoor IRA?
I suppose it does look that way.
The Roth contributions were made to during 2020 before an unexpected spike in income at the very end of the year. Once it was discovered that the Roth contributions were going to be disallowed the TP made a recharacterization of both the contribution and the earnings to a traditional IRA - but it would be a nondeductible contribution. It should still be a 2020 contribution however and the basis in the contribution needs to be protected.
See the instructions on form 8606 page 4 and 5 (mostly the top of page 5). Under this guidance I believe it needs a statement attached in 2020 and then will be reported on the 8606 in 2021 to protect the basis in the nondeductible traditional contribution.