FIling Form 8453

[Islandwalk]

Howdy, all!  I'm a do-it-yourself tax newbie; I use TurboTax on a yearly basis, but my stuff is always dead simple.

Fast backstory:  I played around with Robinhood a bit in 2021 and joined the Dogecoin craze.  I knew I'd get something from them that I'd need to include on my tax returns, so I followed the step-by-steps and where I couldn't electronically import the information, I keyed in the 1099-B information.  After e-filing and sending everything away, TT lets me know I need to mail off Form 8453.

me:  uh whut

If I understand this correctly, I'm mailing Form 8453 and including what TT generated:  Form 8949, "Sales and Other Disposition of Capital Assets".  If I understood correctly, I need to have this post-marked and sent to our IRS overlords no later than three business days after they accept my e-filed return.

So, my two questions:

1. Is it actually that simple, or am I dumbly overlooking something?
2. Can I go ahead and send this thing off via USPS Certified Mail so I don't WHOOPS and forget it, or should I wait for the confirmation for the accepted return?

Thanks, to any and all who can help this idiot out.

(I wish I understood more about finance.  😖)

[PatriciaV · Accepted solution]

Yes, you do need to mail your supporting statements, such as your brokerage statements (Form 1099B) and Form 8453, but you don't need to include Form 8949 since TurboTax filed this form electronically with your tax return. You can include it for reference purposes, if you like.

It's always a good option to send documents to the IRS by a method that provides tracking information.

Note that you must postmark this mailing no later than three days after your e-filed return is accepted by the IRS.

Why do you need to mail Form 8453?

When you use the summary method, TurboTax only produces a Form 8949 with the summary totals that you entered, not the individual transactions, so Form 8949 that is included in your e-filed return is NOT sufficient for this purpose. Thus, to satisfy the requirements of utilizing summary reporting, you need to mail Form 8453 to report the details of your transactions per brokerage statements Form 1099Bs. 

[Islandwalk]

Thank you very much!  After reviewing the information a bit further, it dawned on me that I needed to send the information the brokerage sent along (1099-B).  Thankfully, it's just one page and easy to envelope stuff and send USPS certified.

Thanks so much for taking the time to respond.  😁

[Critter-3]

Instead of mailing anything why don't you just enter the crypto sales (just like stock entries) in the program.  

[21norman02]

On form 8453 there is NO listing for attaching a 1099B form, so do I simply add it to the bottom...or is there a category I should check?  Thanks.

[JohnW152]

Since the information from your Form s 1099-B would normally have been reported on Form 8949, check the Form 8949 box.  

According to E-file in the Instructions for Form 8949, you can either attach Form(s) 8949 showing all the individual transactions to Form 8453, or 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.

If all of the information from your Forms 1099-B that would normally be reported on Form 8949 doesn't appear individually on the Form 8949 that you e-filed with your return, you'll need to send supporting statements that reflect the individual transactions to the IRS with Form 8453. That is, copies of your Forms 1099-B.

The IRS needs to see each transaction separately so that it can match up information it’s received from each of the reporting institutions.

[Chibirsd]

There was an option to upload the 1099b and turbo tax said they would mail for you. Did you not select this option ?? I

[KrisD15]

@21norman02

Pease select Form 8949 

The IRS needs to see each transaction "just in case" they want to check it against their records. 

If TurboTax uploaded the 1099-B, the program could included it with your return, but if you entered a summary based on a paper 1099-B or statement from the broker, you'll need to send a paper copy to the IRS.

[travelseattle]

I had the same question. "Why would Turbotax tell me I need to file a form, but then the form 8453 doesn't mention 1099B?" I think the answer is the line about "sale and disposition of capital assets." I am actually helping my parents for the first time with entering information from their brokerage accounts. In this thread, someone put a yellow highlight on "sale and disposition" which is the last line.

[lhchasteen]

Why doesn't Turbotax just tell you that you will be required to file a Form 8453 BEFORE you e-file so that you could go back and add the required information from your 1099-B instead of having to mail this information to Austin?

[ATMooreTax]

The TT expert said to include 1099-B.  Why doesn't the TT instructions include that detail?