TurboTax suggested me to snail-mail form 8949 after e-filing my taxes. The answer here very nicely explains why this came up. This is coming up because I entered summary while reporting 1099-B. I was not aware that by choosing summary option for reporting 1099-B this will happen and so I choose that to avoid additional steps. Also while doing that I don't recall getting any message on TurboTax saying that this may lead to additional paperwork. I have all the details and I can enter one sale at a time. Can I edit this in turbotax now after e-filling?
You can amend your tax return and change the way your stock sales are reported and list every transaction rather than sending summaries. It will not change your refund or balance due.
The amend program is expected to be available on March 25.
Most people with a large number of stock sales prefer summaries and sending a copy of the brokerage statements. It's less work for them.
Thanks @ErnieS0 . I have a follow-up question. Is there a time limit after e-filling till when I should be mailing my documents?
I e-filed today and my returns were accepted. Is it okay if I keep waiting till 25th March?
Yes. The IRS says if you are filing your tax return using an online provider, mail Form 8453 to the IRS within 3 business days after you have received acknowledgement from your intermediate service provider and/or transmitter that the IRS has accepted your electronically filed tax return. If you don’t receive an acknowledgement, you must contact your intermediate service provider and/or transmitter.
Mail Form 8453 to:
Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
Thanks @ErnieS0 . So, In that case I can't wait till 25th March. Right? Because I did my e-file today on 16th. So, I should email the form by 19th March. Right?
Or I can wait till the 25th March to file the amendment?
Yes. It takes weeks or even months for the IRS to process postal mail. I have not known anyone personally who has had their refund held up due to filing a Form 8453, though it's not something I ask about. Those taxpayers are generally late filers who really don't care how quickly they will get their refund.
It's possible an e-filed amended return will be processed ahead of your Form 8453. Amended returns take up to 16 weeks to process.
You can track it at Where's My Amended Return?
Thanks a lot @ErnieS0 for active responses. I didn't get this clearly. Are you saying?
- I should snail-mail (8453 and 8949 (Capital gains)) the documents. Or,
- I should neither snail-mail nor ammend. Just wait and watch.
- I should wait till 25th and then Ammend it
- Something else.
Although it does take time for the IRS process the postal mail, there is no need to amend your tax return to change your 1099-B reporting. The right way to report your transactions after your tax return was e-filed, and Schedule D summary option was chosen to report 1099-B transactions, is snail-mail forms 8453 and 8949 (Capital gains) to the IRS.
I also had TT tell me to file Form 8453 with box "Form 8949" checked. That line instructs me to send a paper copy of form 8949 "if you elect not to report your transactions electronically on Form 8949."
I did enter them on Form 8949 with Box D checked and did not summarize Box D (basis reported to the IRS) transactions on Schedule D. If you do summarize them I read that you will have to send a copy of Form 8949 to the IRS (Austin TX).
But since I didn't summarize them and entered them on Form 8949 why is TT printing form 8453 and telling me to send a paper copy of Form 8949?
How do I know what forms TT e-file actually sent to the IRS?
You can know exactly what was sent to the IRS. Form 8949 is part of the tax return and was sent to the IRS and is populated with exactly what you entered. If you entered each individual sale, and did NOT summarize as you indicate, there is nothing to mail to the IRS.
TurboTax will send any form that has a number, any Schedule that is being used in your tax return such as Schedule A if itemized deductions were used, and any statement (not common) that must be part of the tax return. Worksheets are not part of the tax return. If you choose to print your tax return, and select 'All official forms required for filing' you will see the list of forms and schedules that would be part of the tax return filed with the IRS.
TurboTax gives conflicting instructions.
this causes your confusion.
IRS requires details for all sell transactions.
EXCEPTION: box A or Box D without adjustments.
If you summarize those, no mailing is necessary.
Anything else you summarize, you mail in the details.
It's a pretty simple rule.
If you are mailing your return, you can attach the details at that time.
To make matters worse, TurboTax now suppresses some details even if you enter them explicitly, causing more confusion.
Makes me want to go back to paper filing next year. Maybe archaic but you see and know exactly what you send.
If I understand correctly, FanFare, you are saying that TT may suppress details for e-file even if you entered them and can see them correctly on the paper forms?
That's a scary thought!