My efiling included 8949 and schedule D. Why do I have to mail them also; what is a schedule D continuation sheet?

[aneelyk]

(I really thought I was done with my taxes.  Do I really have more forms to fill out, and this time with no help?)

[AnthonyC · Accepted solution]

You won't have any more forms to fill out, but you will likely have to mail some statements if you chose to enter summary totals instead of each transaction.

The answer below is going to assume that you choose to use the summary transaction method of reporting your 1099B transactions instead of entering individual sales.

Short Answer:  You do not really need to mail Form 8949, but you do need to mail your supporting statements, such as your brokerage statements (Form 1099B) and Form 8453.

When you use this summary method of reporting (i.e. you just entered your totals and not each individual transaction), in some cases, the IRS still wants the supporting details sent to them.  

Note:  In limited situations, you’re allowed to summarize investment sales without providing complete details.  If you are summarizing multiple investment sales that are either Box A sales or Box D sales, and there are no adjustments necessary (i.e. Code W for wash sales), then it is not necessary to mail in a statement with further details.  Turbotax will tell you this when your sales meet the criteria and will not prompt you to mail any statements.

So, if you are being prompted to mail further statements, Form 8453 says to attach 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.

When you use the summary method, TurboTax only produces a Form 8949 with the summary totals that you entered, not the individual transactions, so the Form 8949 that is included in your return is NOT sufficient for this purpose.  (Though, you can include it with the mailing as a reference).

You need to use Form 8453 to mail the brokerage statements that show the details of your transactions.  Statements should include the following items for each transaction (these are usually reported on your Form 1099-Bs:(  

• 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. 

NOTE: As discussed above, any sales summaries that include only Box A or Box D sales, and which have no adjustments to gain/loss, do not need to be included on a statement mailed to the IRS. 

If you are e-filing your tax return, then mail your statements along with Form 8453 to: 

Internal Revenue Service

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254 

[coysting]

I think this answer is quite helpful. I was able to import my Schedule D details to TurboTax from my brokers last year and I didn't got any prompt to send mail after completing e-file through TurboTax; however, this year, I found that I could not import my Schedule D details to TurboTax and there were also some trading identified as ‘Wash Sell’ transactions and I got prompt from TurboTax that I have to mail form 8453 with form 8949 or an acceptable Continuation Sheet for Schedule D. I'm quite sure that I just need to send IRS my 8453 form with form 8949 and the 1099-B form with transaction details regarding to those transactions identified as ”Washing Sale“ ?if you see non-zero values in1g column in your 1099-B forms). Here's some more explanation about 'Wash Sale': <a rel="nofollow" target="_blank" href="https://www.dummies.com/personal-finance/investing/day-trading/understand-the-irs-wash-sale-rule-whe...>

Just for your reference.

[jsheldon1]

I was so surprised that I was required to send Form 8453 and 8949.  I was wondering if I had listed the sales individually with cost basis and not done the summary, would I still need Form 8453 and 8949.  If this is true, too bad TT did not worn users that the summary method will trigger Form 8453 and 8949.  LONG-TERM TRANSACTIONS FOR WHICH BASIS IS AVAILABLE BUT NOT REPORTED TO THE IRS - Report on Form 8949, Part II, with Box E checked.

Thanks for any thoughts on this subject.

[kristy5747]

I, too, was surprised that I needed to mail in these form.  Wish TT would've told me this as I would've entered the detail information instead of doing the summary.  Kinda disappointed, TT.  You usually do better than this.

[DawnC]

You can go back and add the detailed data in lieu of the summary and mailing if you have not yet filed your tax return.    @kristy5747

How do I change from mail to e-file in TurboTax Online?

[Canyonguy]

Thanks, but this answer is a day late and a dollar short.  TurboTax doesn’t bother to notify the user of the 8453/8949 requirement until AFTER the user has e-filed their taxes.  By then, it’s too late.  TurboTax Premier is supposed to handle investment activity competently.  However, instead of explaining the consequences of entering summary totals in Schedule D, it just let’s you do it and doesn’t bother to tell you that, if you do, you will have to mail paper documents to the IRS.  That is a sick joke and defeats the entire purpose of e-filing.  This is a Design 101 sh&*storm which should have been caught by a first-year developer.  TurboTax should compensate everyone adversely affected by reimbursing users for the time, expense and unnecessary aggravation of e-filing our tax returns only to be told after-the-fact that, oops, now you have to mail in a bunch of paper documents — which could have been avoided with a half-decent explanation in the Schedule D data-entry section.  TURBOTAX SHOULD BE EMBARRASSED AND ASHAMED BY THIS RIDICULOUS, BASIC OVERSIGHT ON THE PART OF THEIR PROGRAMMERS!!!!!  TurboTax owes a huge apology to every user who was adversely affected by their shoddy “interview” process for Schedule D — and needs to fire the development team responsible for it!

[Canyonguy]

The more I think about this, the more infuriating it is.  TURBOTAX OWES USERS AN EXPLANATION AND A HUGE APOLOGY!  And here’s a crazy thought for the suggestion box:  how about letting real users test your software before you release the bug-riddled, badly explained software you provide year after year?  Is it too much to expect for TurboTax to include minimally competent explanations to users who rely on this software?  Tax returns are absurdly complicated and TurboTax is supposed to make them comprehensible to normal human beings.  If they release a version called “Premier,” it should function at a premier level — not at the garbage level this thread clearly shows it to be.