Imported 1099-B creates Capital Gain (Loss) Adjustments Worksheet for each transaction

[msinykin]

As usual, I imported my 1099-B transactions from my financial institutions. In Forms mode, this immediately created a Capital Gain (Loss) Adjustments Worksheet (called "Capital g/l adj" in the forms list) for each transaction, even though these transactions have no adjustments. This hasn't happened with previous versions of TurboTax, and creates hundreds of entries, cluttering up the forms list. Why are these showing up?

[JohnB5677]

You have the option to clear all of that out and manually enter the summaries.

If you do, you have to mail a copy of the brokerage statement listing the individual sales. 

If you e-file, TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it.

If you file by mail, attach the statement(s) at the back of your tax return, after all the forms and schedules.

In either case, click the "mailing instructions" link in the message at the bottom of the TurboTax page and follow the instructions that it displays.

[msinykin]

Yes, I know about that option. 

My question is why an adjustment form is created for each imported transaction and shown in the sidebar list in forms mode. I have used TurboTax for years and it has just started doing this for 2020.

This causes the forms list to be hard to navigate, since it now has hundreds of entries vs. dozens.

[Todd-Greeno]

I am having the same issue...

After importing the 1099 from my bank, TurboTax created 345 of the Capital Gain (Loss) Adjustments Worksheets.  I checked previous years, and this has never happened in TurboTax before.

This leads me to believe this is an issue in TurboTax that needs to be corrected.

Please escalate this.

[fanfare]

TurboTax has a lot of nasty issues with stock transaction reporting this year.

Try a different tax software provider.

[JoshB1]

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@JohnB5677 wrote:

You have the option to clear all of that out and manually enter the summaries.

If you do, you have to mail a copy of the brokerage statement listing the individual sales. 

If you e-file, TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it.

If you file by mail, attach the statement(s) at the back of your tax return, after all the forms and schedules.

In either case, click the "mailing instructions" link in the message at the bottom of the TurboTax page and follow the instructions that it displays.

---

How is this a valid response? TurboTax is very clearly working differently than it did last year - also, I can't even tell if this is accurate - I have the same issues and TurboTax is not generating a Form 8453 

It's also not generating 8494s like it did last year - and as far as I'm aware, nothing has changed in the tax law or recommendations from the IRS

Can you confirm this type of issue has been escalated to the Product/Dev/QA teams and someone is looking into the way TurboTax is handling 1099s this year? 

[av18]

I have well over 200 unnecessary Capital G/L Adjustment Worksheets.  The solution suggested is impractical as I would need to mail 128 pages from my Brokerage statements.  This is a problem in the TT software and TT needs to fix it.  

When I look at the Form 1099-B Worksheet, it has a section for Sale Results for Form 8949.  All of the unnecessary Capital G/L Adjustment Worksheets has the Adj. Code(s) shown as "BYPASS8949."  I interpret this to mean that that the TT software code should have an instruction to bypass the 8949 form and not to print an Adjustment Worksheet.  

Please escalate this issue and get it fixed.

[TomG20]

The software developers may not be monitoring this forum.  It would be best to call TurboTax tech support and report the problem.  Ask them to open a ticket with the IT /  software team.   They will give you the ticket number so that you can follow up. 

[JoshB1]

Can we just file a ticket to have them check this thread? There is absolutely no way I'm going to spend 2-3 hours explaining the issue here...

[msinykin]

I am wondering if this will cause problems with e-filing. TurboTax is showing no errors. If I print the tax return, it looks normal. But if I print the "Recommended for your records" return, it has several thousand pages, since it prints the two-page adjustment sheet for each security.

I am also seeing lots of "BYPASS8949" codes, although not for all brokerage accounts (even though all accounts generated unnecessary adjustment worksheets).

[fanfare]

If you summarize (recommended),

you only need to supply PDF of 1099-B covered transactions with adjustments that are not listed on your e-Filed Form 8949. and all non-covered transactions not listed there.

in other words, for active investors, generally this is a list of the Wash Sales.

Note: TurboTax may suppress some covered transactions without adjustments. For those, no mailing is required !
--
If you have two pages (for example) of Wash Sales,
use Adobe Reader to print those two pages. That's all you have to mail to the IRS, given that those wash sales are not on your e-Filed form 8949 already.

(you might enter them manually if they are few in number.)

[jimbeauxh · Accepted solution]

The creation of all those capital g/l adj forms seems to be triggered by a rounding bug in TurboTax when you import transactions that include cents that then get rounded on 8949. If I take a TXF file with cents, I get lots of adjustment forms. But if I take that same TXF file and round everything to the nearest dollar before importing, they don't get generated.

More discussion here: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/turb[product key remo...

[Todd-Greeno]

I received an alert from this page notifying me that "round everything in the TXF file to the nearest dollar before importing, the capital g/l adj forms don't get generated"...  BTW, I use the TurboTax import process, so I don't see the TXF files...

I don't believe that is a good solution.  I believe Intuit should fix the root cause of this issue; that is, fix the bug in the import process, so all of the TurboTax users aren't required to figure out how to get and edit the TXF files. 

[Todd-Greeno]

I called Intuit today (March 15), and (after a short 7-minute wait) spoke with one of their Help Team Members.  He confirmed that Intuit is aware of this issue, and TurboTax will receive an update later today that will correct this bug.

I asked if it would be necessary to delete the existing 1099 data and the associated Capital Gain (Loss) Adjustments Worksheets, and he said that the fix will automatically remove the Capital Gain (Loss) Adjustments Worksheets and will restore the 1099 info to its proper places.

I might create a new TurboTax file any way, so I can compare results...

[Todd-Greeno]

My TurboTax software did not receive an update until March 18...

After the update, I started a new return, and imported the 1099 Forms.  The SAME ERRORS were created.

I call TurboTax Help again, and spoke with a Rep who quickly understood the issue was due to the TurboTax software rounding the entries, which in turn created the Capital Gain (Loss) Adjustments Worksheet for each transaction.

He was unable to find any references to a fix, though.  He agreed that if there are 1,000 of these round-off issues, there could be a $500 discrepancy at stake.

I asked him to escalate this to the TurboTax Resolutions Desk, and he did that while I was on the call...

IF this does not get resolved, the only way I can see around this is to delete the imported 1099s, and manually enter the 1099 summaries.

Stay tuned...