Form 8453_Urgent ISSUE

[MM_97]

I have received this message from Turbotax

"What You Need to Mail"

Form 8453

| What is this form?
| This is the form you will use to send any required forms or
| supporting documentation to the IRS.
|
| When should I mail the form?
| Mail Form 8453 promptly after your return is accepted with attached
| forms and supporting documents listed on Form 8453.
| Attach the following items to Form 8453: Form 8949 or an acceptable
| Continuation Sheet for Schedule D.
|
| Mail Form 8453 to:
| Internal Revenue Service
| Attn: Shipping and Receiving, 0254
| Receipt and Control Branch

When I look at my finalized TurboTax, it has FORM 8453 

This was selected

Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949

I don't understand this because I want to report this transaction electronically.

Also, I have Form 8949 which has all my 1099 information.

Do I just print Form 8453 and send it to IRS, which has a checkmark on that I elect not to report my transactions electronically on Form 8949?
and

Do for the 8949, Sales and Other Dispositions of Capital Assets
Do I have to fill out all the transaction and send it to IRS?

I am very confused why this is coming up for Turbotax

[DavidD66]

It sounds like you may have elected to enter your stock transactions as summary totals.  This requires that you mail a copy of your Form 1099-B showing each stock transaction to the IRS, along with Form 8453, which is used to identify the return the 1099-B goes with.  Just print the 8453 and a copy of your 1099-B, and mail to the IRS address indicated.

[MM_97]

Thank you very much for your reply,
so what I have to send to IRS is
1. 1099-B

2. 1099-B (crypto)

3. Form 8453

and

4. Form 8949 (Do I have to send this form also, which I have more than 10pg )

To confirm, Form 8949 does not need to be sent?

Thank you.

[WendyN2]

If you e-file your return but choose not to report each transaction on a separate row on the electronic return, you must either (a) include Form 8949 as a PDF attachment to your return, or (b) attach Form 8949 to Form 8453 (or the appropriate form in the Form 8453 series) and mail the forms to the IRS. (However, you can't attach a paper Form 8949 to Form 8453-FE.) You can attach one or more statements containing all the same information as Form 8949, instead of attaching Form 8949, if the statements are in a format similar to Form 8949.

As the safest bet, I always tell the taxpayer to mail the following:

1.  A copy of the 8949 prepared by the tax software you are using and submitted with your e-filed return (and follow instructions above with respect to 8453 if it applies to you)
2. All pages of your brokerage statement(s)
3. A copy of the Schedule D prepared by the tax software you are using and submitted with your e-filed return.

PLEASE NOTE: You must mail these forms and statement(s) within 3 days of e-file acceptance. I always highly suggest that you mail via Certified Mail/Return Receipt Requested as this is your receipt for proof of date of mailing, as well as the fact that you mailed it and it was received by the IRS (this will be the “green card” you fill out and attach to your package that will get signed by an IRS Agent and mailed back to you).

[MM_97]

Dear, Wendy,

thank you very much for your detailed answer.

I am a little confused with your answer since I am not familiar with these tax terms.

So would you indicate the exact forms that I have to send to IRS?

1. Form 8949 (which is already created in my tax form by Turbotax)

2. When you mean by brokerage statement, do you mean 1099B?

3. Turbotax indicated that I could send Form 8949 or Continuation Sheet for Schedule D

"Attach the following items to Form 8453: Form 8949 or an acceptable Continuation Sheet for Schedule D. "

or Do I have to send both to IRS?

When I review my completed tax form, all of these(Form 8949, 8453, Schedule D) are created and entered, I don't understand why I have to send these forms out again to IRS.
Would you please elaborate on why I need to send these forms out to IRS again when all of these forms are filled out in electronic form?

[DianeW777]

Yes.  The forms you need to send to the IRS should be your statement that details your transactions for the year that will also match your summarized entry totals.

1. You are correct, you do not need to send Form 8949 again.  Some taxpayers have a detailed Form 8949 in their files that shows the detailed information others have their own statement or document.
2. Continuation form for Schedule D: This statement can be from your broker or something you created such as an excel file with all of your sales for the year.  Normally it would have a break down for long term sales and short term sales.
3. When summarized transactions are entered into the tax return, which is allowed, the IRS still wants the breakdown to show how you arrived at your totals on the forms in the file. 

Mail your statements (number 2 above) along with Form 8453 to: 

Internal Revenue Service

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254

Use the Form 8453 provided in your tax return, then attach the statement and place them in the mail, as @WendyN2 indicated, within three days after your return is accepted.

[Jeff__M]

I used the Print function to get "Returns for Filing" and the PDF that this produces clearly shows that for our return, the detailed 8949 forms are included.   Is that actually bogus, and the reason why TTax wants me to use form 8453 is that TTax did not actually transmit my 8949 forms?   Or is it instead bogus that TTax asked me to use form 8453 in the first place?   This is clearly a contradiction -- there's a bug in TTax somewhere.

It looks like whenever someone asks this question in this forum, TTax's response is that this because the taxpayer elected to file a summary form.  As far as I know, I never elected to file a summary. 

I would appreciate a clear and honest answer from TTax about this.

Thank you

[DianeW777]

If you entered every individual transaction for your investments trades/sales, meaning you did not summarize your transactions to reduce the number of entries, then you do not need to mail Form 8453 or any attachments.

If you did not enter each individual transaction and there were any summary totals entered then you must mail Form 8453 with the required attachments.

If the questions are answered correctly when entering the information, TurboTax will likely know if you need to mail the necessary forms. I hope this helps to clarify and provides the answer your question.

[dSF2]

What happens if I didn't receive a 1099-B from my broker? I trade stocks with an international broker that does not issue 1099-B statements.

[Mike9241]

then the reporting is still required on your federal 1040 Form 8949 (which carries to Schedule D). but you are on your own for entering the required data.   

form 8453 a transmittal form for form 8949 would be of no use in 2020 because you can no longer e-file.

if your broker provides a substitute form that reports the info the same as on 8949 you can submit that with your return. just make sure to enter the activity in TurboTax. if you have this detail then in Turbotax you can use a summary total for short term and for long term. adjustment code M for each total

you also have to do your due diligence to see if wash sale rules apply to any sale where there was a loss. foreign brokers do not