Thanks for the reply.
I opened a case with TD Ameritrade and according to their tax department, they have not been told by IRS to not use negative Proceeds for 2020 taxes. If this is the case, it would help if you can provide documentation or Communications from IRS stating they will reject returns with negative Proceeds. This will help us convince the brokers that they are incorrect as it appears from the forum that more than one broker is doing this (Fidelity as well). We are being put in the middle of this situation where we are asked by Intuit to manual modify the entries, running the risk of an audit because doing so, the total Proceeds will be different than what is reported by the 1099B. As you mentioned, the Brokers have used negative Proceeds last year. Hopefully Intuit is working with them to correct this for tax year 2020 as this seems to be a wide spread issue. And if Intuit is not working with the Brokers, at least give us the documentations so that we can go back to the Brokers to convince them ourselves. If IRS told Intuit that returns will be rejected with negative Proceeds, Intuit must have documentation on this. Currently, the instructions for 1099B clearly states that negative numbers can be entered via parentheses as well. Please share the communication with IRS.
Thanks
Kim
