Form 8949 and 15000 transactions

I did a lot of day trading of cryptocurrency in 2019. I did not receive a 1099-b for any of the transactions from the exchanges. Because a single cryptocurrency transaction is often broken up into multiple smaller transactions, I ended up having close to 15000 transactions, all short term. I have aggregate numbers that I inputed into TurboTax online and that seems to work fine.

 

My problem is this - everything I've read says to mail in a paper copy of Form 8949 with every transaction to the IRS along with Form 8453. That would mean sending the IRS 546 pages of transactions! 

 

Is this right? Am I suppose to send them over 500 pages? What would they even do with that? Is there no way to give them a digital copy? 

 

Any advise would be hugely appreciated.

rjs
Level 15
Level 15

Investors & landlords

Yes, you have to send them a complete list of all the transactions. There is no way to send it digitally. It doesn't have to be on Form 8949. It can be a "statement containing all the same information as [Form 8949] and in a similar format."


I don't know exactly what they will do with it, but the IRS is giving special attention to cryptocurrency transactions lately, so just do what they say.

 

Investors & landlords


@eyesandears wrote:

That would mean sending the IRS 546 pages of transactions! 

 

Is this right? Am I suppose to send them over 500 pages? What would they even do with that? Is there no way to give them a digital copy? 

 

 


As rjs said, the IRS wants those.

 

One option is to use a tax professional to file your return.  Their software is capable of uploading the PDF.  Perhaps other do-it-yourself software is capable of doing it, but I'm not sure.

 

Another option is to print it REALLY tiny (you can tell your printer to print at least 16 pages per one sheet of paper, so it shows up really small), and write on the top of the first page "larger version available upon request".  It is unlikely the IRS will actually be analyzing it, so the really tiny version will satisfy your obligation.

 

Investors & landlords

you should think about other tax software not from Intuit  that lets you e-File with an attached PDF file showing your transaction details.

 

 

Investors & landlords

Additionally, Schedule 1 has a specific question related to cryptocurrency.  Make sure you address this question.

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

Investors & landlords

Personally I would attach a note to the form 8453 instead of the 8949 substitute  saying there are more than 15,000 entries spanning 564 pages and that a PDF can be sent on request.  Doubtful you will ever be asked for the backup information.