turbotax said to mail my 1099-DA to the irs. what triggered that?

[lb93]

The 1099-DA showed the cost basis but said not covered. there was a small loss. The popup box said "you'll need to mail a paper copy to the IRS" and provided an address in Austin. Under what circumstances is this required?

[TomK2023]

Form 1099-DA (Digital Asset Proceeds From Broker Transactions) may be required to be mailed to the IRS because of your "Noncovered Security." When the broker stated the asset was "not covered," they are sharing with the IRS that they are reporting the sale price (proceeds), but that they can not guarantee the cost basis.

Even if the cost basis is printed on your form, it wasn't electronically reported to the IRS in a way that they can "match" it automatically.

In addition, If you entered a summary total for your 1099-DA (instead of every individual trade), you are required to mail the IRS a statement that shows the breakdown of those trades.

[fanfare]

You don't mail details to the IRS if you supply details on your e-Filed tax return.

Manually enter that 1099-DA explicitly .

It should then appear on Form 8949.

@lb93