I was notified by turbotax that I must mail a form 8453 to the IRS with an "acceptable continuation sheet for Schedule D". What is this?

[KittyM]

Form 8453 is the cover sheet for documents you are required to send to the IRS.  Usually the "acceptable continuation sheet" for Schedule D is a copy of your brokerage statement or something similar, such as Form 8949.  

If you only entered the summary figures from your 1099-B, then the IRS wants to see your full brokerage statement.  

If you entered cryptocurrency and they sent you completed Forms 8949, then the IRS would like to see those.

[DLondeen]

In your reply you stated, "If you entered cryptocurrency and they sent you completed Forms 8949, then the IRS would like to see those." Who is "they"? The IRS, brokerage firm or TurboTax?

My Filing Instruction Sheet states, "Attach the following items to Form 8453: Form 8949 or an acceptable
| Continuation Sheet for Schedule D."  This is telling me to send Form 8453 and Form 8949 (printed by TT) or Form 8453 and the Continuation Sheet for Schedule D ( I would have to enter all data).   I chose the first option to send 8453 and 8949. Is this correct?

[SantinoD]

Yes, IRS would need those forms in this situation. After you have filed, you can mail in the printed Form 8453 and 8949. 

If you're e-filing, you only need to mail the IRS a copy of your 8949 (along with Form 8453) if you entered sales section totals for one or more sales categories (instead of each individual sale) and one of the following is true:

• The sales category for one or more summaries is something other than box A (short-term covered) or box D (long-term covered), or
• The box A or box D summary includes adjustments (typically listed in boxes 1f or 1g on your broker statement)

If you're required to mail in forms 8949 and 8453, do so within three days after the IRS has accepted your e-file. Here's the mailing address:

Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254

@DLondeen 

[nealrabideau]

Somehow I missed being able to upload the forms needed when I e filed.... I have never mailed anything to the IRS i have always e filed. i want to send the right information because well IRS.

so i have to send: Attach the following items to Form 8453: Form 8949 or an acceptable
| Continuation Sheet for Schedule D.

turbo tax filled out the 8949 form for me from the info i entered. do I send that in with the 8453 form? do i send the whole Schedule D with all parts 1-3 and the 8949 form? since I didn't get to upload the 1099/8949 forms do i send my physical papers in as well?

I'm a lost and frustrated about this whole situation.....

[MonikaK1 · Accepted solution]

if you are being asked to send in Form 8453, it's generally because you chose to use the summary transaction method of reporting your 1099B transactions instead of entering individual sales. Note that the form states "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".

If that is the case, then the Form 8949 prepared by TurboTax won't include the additional details about the individual sales and you should mail the brokerage (or other) statements that show the details of your transactions.  Statements should include the following items for each transaction (these are usually reported on your Forms 1099-B or on a supporting statement):

• Description
• Date acquired,
• Date sold,
• Sales price,
• Cost basis,
• Gain or loss for each sale,
• Sale category based on how the sale was reported to you and the IRS, and
• In some cases, there will be an adjustment code and adjustment amount.

Use Form 8453 to send any required paper forms or supporting documentation listed next to the checkboxes on Form 8453. Don't attach any form or document that isn't shown on Form 8453 next to the checkboxes. In your case, check the last box, for Form 8949 or a statement.

Please see this help article for more information.

[smrude62]

In this situation, at this step of printing Form 8453, why does TT not also print the Form 8949 automatically, in addition to the Form 8453? I had to manually print this Form 8949 and include. The instructions to do so are not clear!!!!!

[DawnC]

If you're e-filing, you only need to mail the IRS a copy of your 8949 (along with Form 8453) if you entered sales section summary totals for one or more sales categories (instead of each individual sale) and one of the following is true:

• The sales category for one or more summaries is something other than box A (short-term covered) or box D (long-term covered), or
• The box A or box D summary includes adjustments (typically listed in boxes 1f or 1g on your broker statement)

If you're required to mail in forms 8949 and 8453, do so within three days after the IRS has accepted your e-file. Here's the mailing address:

Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254

Tip: In lieu of Form 8949, you can substitute copies of your year-end broker statements that show the individual transactions. You don't need to include unadjusted Box A or Box D transactions.

[fanfare]

IRS requires details of your SELL transactions to be supplied on some Form 8949 (e-Filed or mailed),
or on your other forms (e.g. consolidated 1099-B or spreadsheet) which have the same information and in the same manner as Form 8949.

Either way, if you choose to summarize only, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return. (unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax Online will ask for it).
Detail Reporting Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.

Your e-Filed 8949 is a summary, not a list of details.

You don't mail that.

@smrude62