Get your taxes done using TurboTax

Attachments cannot be used with an e-filed tax return.  You would have to print and mail the tax return if you a required to provide a statement to the IRS.

If the IRS is not requiring an explanation for the non-business bad debt, there is no reason for you to provide one.  If the IRS questions the debt then they will send you a letter in the mail requiring proof of the short term capital loss.

View solution in original post