The IRS should not be requesting Schedule D/8949 if
You don’t have to file Form 8949 or Schedule D if you aren’t deferring any capital gain by investing in a qualified opportunity zone fund and both of the following apply.
1. You have no capital losses, and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements); and
2. None of the Form(s) 1099-DIV (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain).
sometimes the IRS doesn't know its own rules.
do not ignore the notice. respond appropriately like I only had capital gain distributions for which schedule D is not required by your own rules. Don't know all versions of Turbotax but if you only had capital gain dividends there shouldn't be a schedule D in your return. if there is and there are amounts on any line 1 through 14 except 13, there is something wrong because amounts on those other lines would indicate that Schedule D needed to be filed.
