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

[jimbeauxh]

I found two ways to work around this.

1) For my accounts with <150 lot transactions, after importing the OFX from the broker, I manually deleted each of the generated g/l adjustment forms. The reported 1099-B totals from TurboTax and my broker then matched to within ~$1.

2) For accounts with >150 lot transactions (too many for me to individually delete), I downloaded the CSV list of transactions from the broker and generated a TXF file with my own software that rounded off the cents. Importing that rounded TXF avoided the generation of those hundreds of g/l adjustment forms. I then manually adjusted a few of the transactions to make the totals match. Not ideal, and it only works if you can code and are using a desktop version with TXF support.

[JoshB1]

Thanks for pushing this through - it seems like people are sort-of giving in on this issue: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-turb[product key r... - regarding the rounding issues with 1099s

I just got an update in TurboTax but I still see all these adjustment worksheets in my TT file - wonder if I need to re-import but since there are no release notes, I have no idea if that is necessary ¯\_(ツ)_/¯

[Todd-Greeno]

After my previous post, I was connected to the TurboTax Resolutions Desk, and spoke with a Rep there who spent a great deal of time with me, reviewing the Capital Gain (Loss) Adjustments Worksheets that were added to my Tax Return.  I pointed out to him, that several fields in the worksheets were blank after the import, and generated errors (Cost Basis; Acquisition Date, etc).  In reviewing the actual 1099, we confirmed that TurboTax failed to populate these fields, and the Error Check highlights the forms that needed attention...

The Rep pushed the issue up to the next level, and told me to check again after the scheduled March 25 update.

We also discussed the alternative of deleting these forms (way too many; easier to just start a new Return), and manually populating 1099 Summaries.  HOWEVER, this requires mailing in documentation to the IRS, so eFiling is not possible.

My plan is to wait until the March 25 update, and see if anything has improved.  If not, I will call again, and reiterate that with these errors, Turbo Tax filers will be unable to eFile.

Stay tuned...

[Todd-Greeno]

Here is the Official response from Intuit/TurboTax:

• Form 8949 Rounding
  The 2020 TurboTax software has been modified to conform to the IRS instructions/guidance and industry guidelines. Publication 17, 2020 Tax Guide for Individuals (on P. 13) provides that: Rounding off dollars. You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. The TurboTax program, beginning in 2020, now rounds the individual entries for sales price and cost basis and then computes the gain/loss based on these rounded numbers. While we recognize that this may cause differences from the actual totals reported on Form 1099-B. The rounding differences are well within the IRS built-in tolerances for rounding discrepancies.
  When entering specific individual amounts from Form 1099-B such as Sales Proceeds and Cost Basis, the second paragraph above does not apply - as the entries are not considered by the IRS to be “two or more amounts to figure the amount to enter on a line”.
  As an alternative, TurboTax provides the ability to report Form 1099-B transactions as “summary transactions”. If a detailed Form 8949 is required, then the TurboTax online program also has a new feature that will allow you to upload a pdf copy of Form 1099-B that will be transmitted to the IRS with the tax return (in many cases, this will not be required if you have only A or D transactions with no basis adjustments, which are not required to be reported on Form 8949). TurboTax Desktop does not have the ability to include PDF documents in electronic filing. If you choose to use the summary reporting method on TurboTax Desktop, you may need to mail the detailed information about your sales to the IRS using Form 8453.
  Pub 17, 2020 Tax Guide for Individuals, along with the Instructions for Schedule D and Form 8949 are consistent with the above.
  
  FYI, I discussed this with the CPA who wrote it. In summary, they made the switch to transaction-level rounding intentionally and do not view it as a bug, so they will not be updating their software to "fix" it. The guy I spoke with left open the possibility that they'll revisit the issue for next year based on the feedback they're receiving, but he made even that sound pretty unlikely. He said they made the change to be more consistent with IRS instructions about rounding and to be more in line with the "industry standard" approach.

In my opinion, this fails to address the hundreds of Capital g/l adj Forms that are created by the round-off discrepancies.

Also, it does not address the multiple import errors of blank fields for Acquisition Date, Cost Basis, etc. that TurboTax fails to populate.

Stay tuned...

[jarv1s]

I have similar issue when trying to fix the entry it will not allow me to update and goes thru page unresponsive.

I did delete and re-import this still not working right , The line items I have is only 930. Awaiting for an update from Turbo Tax to fix the program. I am using the web version.

[zigmeister3]

I also had the issue of hundreds of Capital Gain (Loss) Adjustments Worksheets in my return (in addition to the missing Sales Category issue). I downloaded the update yesterday (3/25/2021) and it resolved the missing Sales Category issue and I installed another update this morning (3/26/2021) and the hundreds of Capital Gain (Loss) Adjustments Worksheets are now gone. Thanks everyone for keeping the pressure on Intuit to resolve this issue.

[Todd-Greeno]

Yes, the Cap g/l Wks forms are no longer generated...

HOWEVER, the 1099-B Worksheets now have a LOT of blank fields, the data for those fields is on the source 1099 Forms, so TurboTax is failing to populate these fields.

[zigmeister3]

Interesting, I'm not seeing that. My Form 1099-B worksheets appear to be properly filled out with no empty fields.

[av18]

I just downloaded and installed the new update.  However, ALL of the unnecessary Capital Gain (Loss) Adjustments Worksheets are still there -- over 200 of them.  I am using TT Deluxe.  Is that why this wasn't fixed?

[JoshB1]

Yup, still seeing the Adjustment worksheets for every single transaction...do we need to reimport? WISH there were release notes and instructions!

[zigmeister3]

I'm using Premier, my understanding is that Deluxe doesn't support 1099-B transactions which is why I upgraded to Premier.

[Todd-Greeno]

I received the TurboTax update, saw the Cap g/l Wks forms were still there, so I deleted the imported 1099s and imported them again.

THEN, I had a 'clean' list of Forms, HOWEVER, a number of the fields in the 1099-B Worksheet were blank.  I confirmed that  the data was indeed on the actual 1099, so called Intuit again.

After speaking with FOUR reps, I was finally escalated to one who seemed a bit savvy about the issue, but the Rep was trying to persuade me to manually enter the data that TurboTax failed to enter -- not a great solution...

Eventually, the Rep agrees to send the issue up to the development team...

Stay Tuned...

[Todd-Greeno]

Yes, delete and re-import (see my other post on this).

[JoshB1]

So glad there's a community here that can do Intuit's job of both:

• Quality Assurance and bug reporting (not to mention advocating and pressuring Intuit to resolve issues)
• Providing release notes for software updates

¯\_(ツ)_/¯

I honestly would be asking for my money back if Fidelity didn't give me a free copy of Premiere this year

[Todd-Greeno]

How did you get the TurboTax Premier from Fidelity?...

I have accounts with Fidelity, but never saw an offer like that (maybe I missed it?)