There's a blurb at the bottom of the 1099-B Section stating I need to finish reporting my stock sales by mailing in a form. Is this mailed in when I e-file my tax return, or would I need to mail in my 1099-B forms separately?
No you don't mail 1099-B forms. The IRS receives copies of all 1099 Forms. You input the information that is on the form and the correct tax forms and schedules are sent to the IRS when you e-file.
Then why is it listed on the page that you have to mail it in to complete it?
Did you choose the option to enter a summary instead of entering each sale? If so, then you have to mail a copy of the brokerage statement listing the individual sales. You have to send a statement, not copies of individual 1099-B forms. 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.
if I already e-filed but forgot to take down that information, is there a way for me to still access form 8453 and the mailing instructions?
It is explained on the first few pages of the Turbo Tax PDF Return Doc that Intuit provides for your records
If the IRS receives copies of all 1099(B) forms, then why do we still have to mail these forms to them along with Form 8949. I chose to enter a summary of all transactions (i.e. cost basis and proceeds) instead of entering each sale (basically, copied what was on the consolidated 1099B form). Upon completion, I was still reminded to send Form 8453 along with Form 8949 and 1099B to the IRS. Again, isn't this redundant work if the IRS already receives all 1099 forms?
@MH - You don't have to send the IRS copies of 1099-B forms. They do already have that. But 1099-Bs do not always have complete information. If there were sales for which basis was not reported on the 1099-B, (box B, C, E, or F is checked on Form 8949), then you have to either enter each transaction individually on your tax return, or send the IRS a statement showing all the information that would be on Form 8949 for the individual transactions. What you send with Form 8453 is the statement listing the details of the individual sales.
Only include a 1099-B when filing by mail if the form lists tax withholding (which is uncommon.)
IRS receives all your tax documents. That doesn't excuse you from supplying required documents with your tax return.
Yes mailing the consolidated 1099-B is redundant.
Many filers just don't bother to follow the rules.
If you have transaction detail to supply and you are mailing your return, attach it.
Form 8453 is just a cover sheet and is used only if you e-File and you have three business days after your return is ACCEPTED to mail the paper documents to IRS in Austin TX, which is not a regular filing place for form 1040.
2020 ProSeries did not generate a Form 8453 or ask to attach a scanned copy of brokerage statement of sales and exchanges. Summaries of ST and LT were entered on the a Form 1099 B worksheet in totals. Could not locate a field to attach a file. Any where to find a notice of the current year protocol?
To clarify your question, which version of TurboTax are you using?
Proseries
1099- b at the top
filled in the summary st and lt proceeds and cost
This is a community for TurboTax users. Please go to the Proseries Community to ask your question.
I also want to know whether I need to mail a copy of 1099B or not. I have about 200 pages of that form. Because Turbotax cannot import 1099B over 2000 records, I had to input the summary. So I wonder whether I need to mail about 200 pages of 1099B to IRS.
Yes, you should mail your statements that verify your summarized totals. The IRS dictates the field lengths with the e-file specifications and requirements. They want the detail mailed to them with large transactions for better or worse. They also may want to review any non-covered (basis not reported to IRS) sale transactions. Be sure to include any statements or documentation that would provide this if you have those types of transactions.
If you are e-filing your tax return, then mail your statements along with Form 8453 to the following address within three days after the IRS accepts your tax return:
Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
Question. At the bottom of the 1099-b worksheet there is a line that says:
PDF Attachment
Taxpayer must mail in a statement with more details?
Even though the entry on this form is a summary of my transactions, its says "NO".
Is this correct? I thought if you summarize you have to mail in the Brokerage statement
Perhaps IRS form 8453 was prompted by the last option listed on the form.
Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949.
Did you enter a summary of your brokerage sales into TurboTax?
Form 8453 is mailed to the IRS within three business days after receiving notice that the IRS as accepted the electronically filed tax return. The IRS can then compare the brokerage statement against the the summary that was reported.
Per @JamesG1
Why would you reply with mixed information. Clearly the question was when you mail in your returns. Mail in your returns. Do you need to include all 1099B pages attached to the 1040 which includes all bought and sold stocks?
No, not necessarily. Form 1099-B is not necessarily attached. Only the pages or portions relevant to detailing the summary are mailed. The mailing must include a "cover page" of Form 8453, which can be prepared in TurboTax.
The tax return that is e-filed or mailed can include Form 8949 reporting investment sales with detail in part and with summary for other parts. Anything that was entered in summary is expected to be mailed within three days of electronically filing.
Having just gone through this, and spending a fair amount of time on it, I understand the issue of what original poster was asking and some of the interim postings misunderstanding what is being described and asked.
If you have many, many brokerage transactions - in the thousands (with commission free trading and brokerages providing program interfaces to their systems these days, it is quite doable), you must still report the entirety of what is contained in the 1099-B statements. Turbotax (Premium) actually choked and locked up when importing from my brokerages because it could not handle the number of transactions. For these folks, there are a couple of options:
1. Utilize summary entries. Within Turbotax, there is a help topic titled "Should I summarize my sales". Basically, any transactions identified as Box A or D can be netted together and provided as a single entry for each category. However, transactions with any adjustments (W wash sale, for example), or any which are cost basis not reported to IRS still must be individually entered. Here's the meat of what the Turbotax help topic provides:
"Here's a tip that might help: you can report individual sales as well as summaries for the same account. So let's say you have an actively traded account with 500 stock sales that are all Box A or Box D sales. Only 3 of the sales require any adjustments. In this case, you can report the 3 sales that require adjustments individually. Then you can report all the remaining sales by entering two sales summaries. By entering just 5 sales you've covered all 500 sales and don't need to mail in any additional info."
2. If you still have many, many individual entries that would need to be manually entered, just provide all transactions summarized and category netted, and mail in "a statement". The statement does not have to be the 1099-B, it can be one that you create in a spreadsheet (for example) providing the necessary transaction information - maybe your brokerage provides a simple CSV that can be imported to a spreadsheet and edited down to just the relevant transactions and information. However, again, in the case where the taxpayer has a huge amount of transactions and the brokerage only provides the 1099-B (printout or PDF), that may be the "statement" you mail in.
@ross in ss- it applies whether you mail in your return or you file electronically. If you mail in, you provide the "statement" with your mailed in return. If you file electronically, you mail to Austin TX. This is all provided within/by Turbotax if/when you choose to make summary entries.
Now, my question - you've thrown your hands up, decided to no longer waste hours individually entering the individual adjustment transactions, used summary entries, got everything e-filed/accepted and mail the statement with 8453 to Austin TX...is there an equivalent process to follow for the state tax return? Turbotax did not say anything about that. However, knowing my state and that they always want the Federal 1040, I can see myself getting a nasty letter from my state revenue servicing center in time requesting it. I've googled and thus far come up empty-handed. I'm thinking I'll just have to wait and see.
There is another thread on this topic:
It seems that there was confusion around this in the past, and I believe that there have been updates to the software that made things clearer based on some suggestions of the posts in the above thread - Turbotax guided me through what needed to be done. This was the first year I had to do this, and it was not terrible.
I do agree with others who mention it - IRS already has the entirety of the 1099-B, so mailing it, or equivalent information contained in it seems to be redundant.
@dteijido- you wouldn't have to mail if you summarized AND there were no adjustment transactions or any with basis not reported to IRS that you didn't individually enter.
You do not need to send in your 1099-B forms. The IRS has already received a copy from the broker. They will ask you for a copy if they need it.
Assuming you entered the information correctly, the 1099-B information should appear on Schedule D of your tax return. Depending on what information you have entered, you may also see the same information on Form 8949 submitted with your return.
You can check these to verify that the information on 1099-B was reported correctly.
@phildonniain the situation discussed in this thread, if you use summary entries and have not individually entered each adjustment transaction and any with cost basis not reported to IRS, then you are required to provide a statement of those transactions. You do have the option of creating "the statement" yourself in whatever format you like so long as the necessary entries are provided. However, again, in the case of hundreds or thousands of transactions that may need to be individually entered you may in fact need to send the 1099-B as the supporting statement along with 8453. Again - Turbotax correctly instructs when 8453 must be mailed in and when you mail it you cannot send a note saying "Hey guys, you already have the 1099-B, go look at it" - you must attach the statement to it.