1099-B doesn't support negative value in box 1d

[Jimmy W]

Good news for everyone: I have a large account with Ameritrade so I have a private client broker working with me. He reported this problem to their tax department. It turned out this is a widespread problem. Ameritrade’s tax department firmly believes this is a TT error. TT misinterpreted IRS’s guidance.  They are talking to TT to have it fixed. I don’t know when this will be fixed by TT though. I am a little upset by some folks on this forum that carries a label “employee tax expert” who were stating that “IRS no longer accepts negative proceeds...”. Everyone makes mistakes or misinterprets things. But if have you be sure or cite the sources if you carry a label of “employee”

[brxb88]

Hi JimmyW,

can you kindly keep us informed if you learn that TT fixes this software issue?

tried to call customer service but no progress. I think Ameritrade, Fidelity etc, will have more influence.

[itsblackandwhite]

1d can have a negative number-- it's suppossed to be negative for certain transactions-- I have over 200 entries.. go to the source from IRS page 8 lower left corner:    https://www.irs.gov/pub/irs-prior/i1099b--2020.pdf

[itsblackandwhite]

Turbotax needs to fix the glitch ASAP--   negative number in 1d on 1099B 

IS correct for certain transactions-- all was good in the previous years.   Turotax/ Intuit can fix this is a minute-- by changing the field to accept negative number.    See IRS 2020 1099B instructions , page 8, lower left corner:   https://www.irs.gov/pub/irs-prior/i1099b--2020.pdf      --- the IRS has is written in black and white

[itsblackandwhite]

Not true.   IRS WILL accept negative number in 1d -- or proceeds for certain transaction..   negative number needs to be put in parentheses  SEE  2020 1099B INSTRUCTION page 8, lower left-- its in black and white directly from IRS-- its TurboTax malfunction , software needs to be way it was last several years when it worked just fine- to put negative number in 1d

READ FOR YOURSELF :       https://www.irs.gov/pub/irs-prior/i1099b--2020.pdf

[itsblackandwhite]

Yes that works--- But when the IRS sees the information was manipulated from box 1d to 1e -- contrary to what your broker sent-- I wonder if you will get a letter from the IRS-- as they look for matches sent from your broker

[itsblackandwhite]

Exactly-- beware of changing---That's why Im spending extra $90 to have Turbotax CPA do it manually for me-- and audit defense.    For crying out loud-- why Turbotax simply cannot just fix their error is beyond understanding

https://www.irs.gov/pub/irs-prior/i1099b--2020.pdf     <<<This is the 2020 IRS instructions , page 8 , stating negative numbers allowed in 1d (proceeds)

[Anonymous]

There won't be an audit because the format of the 1099b has negatives and your entries into the software don't.  Audits don't work that way.  They are looking for the total loss, which to report correctly per the Schedule D instructions which is what you are sending to the IRS, they should not be negative on this form.  

https://www.irs.gov/instructions/i1040sd

Brokers were given the same information as TurboTax - somewhere there needs to be an adjustment so that they can be reported as they should be and a few made the changes, but it seems most did not. 

When importing the software just takes like fields to like fields - it can't convert them for you, unfortunately.

This is definitely an IRS mandate  - but it's in the eFile instructions given to eFile providers not anything that is easily shareable.  

[TheRealTax2]

Issue should be fixed in today's TT software update.

[allandb1]

I had the same problem.  What I did was to log into my account on the TD website and go to the Tax Center. Then I selected the 2020 gains/losses report (with wash sales adjustments) and downloaded it to a TXF file, which is one of the options on the top of the screen when you open the report.

I then imported the TXF file from my PC into TurboTax using the function to import a file.

After doing it that way, I had no error messages.

Hope this helps.

[vicmyers]

I updated TurboTax and tried out 1099B import from TD Ameritrade with negative proceeds.  Everything seems to be working and Smart Check gave me no errors.

A minor annoyance is that TurboTax rounds off before doing the subtraction to calculate gains.  There is a rounding error on the total proceeds of $10 or so.  That's the difference between TurboTax and the 1099B total proceeds.  There is about a $13 difference on the total gain out of ~$8,250.

It is probably will not trigger an audit.  But it is an annoyance.

[shanehooker653]

Hallelujah! TT fixed the problem. I had already started to manually update some of the entries so I just went back and re-imported my 1099-B from Ameritrade and it now passes the TT review. Thanks.

[dzzz]

Now that TT has fixed the problem with errors on negative proceeds, has anyone gotten rejected by the IRS when they submitted their return for the negative number?  There were some who insisted that the real problem was that the IRS would reject the return even TT accepted it.  I saw one post from someone that said after the TT fix that their return was rejected by the IRS for negative proceeds even though TT no longer flagged it as an error.  I would like to find out if this is the case before I submit my return.  Thanks.

[snrbss]

Still no fix on the filing electronically error.  I didn't pay for this software to edit hundreds of these transactions by hand.  If they don't fix this I'm getting a refund and filing an extension and having an accountant do my taxes.  This is ridiculous.

[BeornFromW]

I have been fighting this issue too.  I followed the instructions and have a couple of comments.

First, instruction #5 refers to 10d but should be 1d.  

Second, when leaving 1d blank my tax filing failed the review.  I went back and entered 0.00 in 1d for those entries I had blanked out.  All errors cleared up.