Hi everyone, I can use the communities help. I received a letter from the IRS asking me to submit a Schedule D and all supporting forms. I prepared my return through Turbo Tax and the line in question (7) has a check mark indicating that a schedule D is not required. I have found schedule D in Turbo Tax which is completed but am not sure if there are other forms that I need to submit, as there is mention of 8949 but none of the entries required for the 8949 are relevant to my taxes. Any assistance/guidance is greatly appreciated.
If you reported a sale of assets or form 1099-B TurboTax would have completed form 8949 and Sch D. Include both with your reply to the IRS.
The checkmark happens when you get a 1099-Div with an amount in Box 2a,
and nothing else to report on Schedule D.
You can get Schedule D in fillable PDF format for manual preparation.
Put the amount you see on 1040 Line 7 on Schedule D lines 13,15,16.
Or, Print the Schedule D from TurboTax if it is filled out.
Schedule D lines 1a and 8a do not require Form 8949.
Give that Schedule D to IRS and they should be satisfied.
The IRS should not be requesting Schedule D/8949 if
You don’t have to file Form 8949 or Schedule D if you aren’t deferring any capital gain by investing in a qualified opportunity zone fund and both of the following apply.
1. You have no capital losses, and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements); and
2. None of the Form(s) 1099-DIV (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain).
sometimes the IRS doesn't know its own rules.
do not ignore the notice. respond appropriately like I only had capital gain distributions for which schedule D is not required by your own rules. Don't know all versions of Turbotax but if you only had capital gain dividends there shouldn't be a schedule D in your return. if there is and there are amounts on any line 1 through 14 except 13, there is something wrong because amounts on those other lines would indicate that Schedule D needed to be filed.
Thank you everyone for your feedback all of your input was helpful!
As Fanfare suggested I do have a 1099-Div with an amount in box2a and nothing else to report on the schedule D. I will be completing the schedule D as suggested and forwarding this to the IRS.
I suspect that this is a case where the IRS "Doesn't know it's own rules" as my return met both criteria that you laid out.