Box B and Box E Designations on Form 8949

[cathyt2015]

Hello,

My concern involves 1099-B information imported into Turbo Tax from Wells Fargo (WF).  I had 1603 sales in 2025.  Clearly, this would be too much to enter by hand.  I do have the cost basis for each sale, and WF had it as well.  I am not sure why WF stated that it did not.  I printed out a Capital Asset Sales Worksheet for the WF account, and discovered that 8949 Box B showed short term sales with a cost basis NOT reported to the IRS and Box E showed long term sales with a cost basis NOT reported to the IRS.

WF really did have the cost basis entered for everything that was described as NOT reported to the IRS. and that information even printed out on the Capital Asset Sales Worksheet.

I read that if I do not correct the Box B and Box E items, I could be taxed significantly more than is necessary.  I also read that I had to go into each individual entry that had Box E or Box B checked and re-enter the amounts by saying the amounts shown were incorrect.  I am doing this now.

When I open a Box B investment it says "Short term basis not reported to the IRS (noncovered").  Since I am about to re-enter that information, should I also change the Sales Section to read "Short term basis reported to the IRS (covered)" instead?  Please try to respond to this in particular.

What is the best way to check that all of my WF 1099-B information has been correctly transferred to Form 8949 or to Schedule D?

Help would be greatly appreciated.

Thanks,

A senior senior  

[DavidD66]

You do not change the sales category that transactions are reported under on your Form 1099-B.  Because a transaction is reported as category B or E does not mean your broker did not have the cost basis.  "Noncovered securities, which are typically stocks purchased before 2011 and mutual funds purchased before 2012, cost basis is not required to be reported.  The rules for tracking and reporting basis by brokers were very different then.  Also cost basis for inherited securities, transferred securities where the original cost basis isn't know, and some complex publicly traded partnerships are not required to be reported.  So if you sold a stock that you bought in 2005, your broker very well might know the basis, but is a "non-covered" security and will be reported as category E and the cost basis will not be reported to the IRS.

If you have a lot of transactions for which you need to go in and add the cost basis, you might want to delete your import and reenter using category totals instead of each transaction.    While working in your return: 

  

• In the wages & income section, Select "Investments and Savings...."  
• On the page "Did you have investment income in 2025?"  Answer Yes, or
• If you've already started the section, click on "Add Investments" at the bottom of the screen
• On the page "Let's Import your tax info" click on "Enter a different way" 
• Select "Stocks, Bonds, Mutual Funds" on the page with "OK let's start with one investment type" 
• When asked "Which bank or brokerage is on our 1099-B?" enter the name of your or broker or mutual fund company, leave the other fields blank. Click Continue 
• Answer the next three or four questions 
• Answer Yes to "Did you buy every investment listed...." (unless you inherited or were gifted the funds) 
• Select "Sales Section Totals" 
• Locate your sales section totals on your 1099-B 
• Enter your Investment Sales Section Totals and repeat till you have entered for each category. 

After entering all your sales section totals,  Look for "Now we'll help you upload your 1099-B since the IRS requires a copy" and follow the instructions,  or you can mail a paper copy of your 1099-B to the IRS.  If you want to mail, click on "How do I mail my statement". 

  

Take a moment to double-check that your statements are complete. For each sale listed, there should be: 

•  - A Description 
•  - Date Acquired 
•  - Date Sold 
•  - Sales Price 
•  - Cost Basis 
•  - Gain or loss for each sale 
•  - A based on how the sale was reported to you and the IRS 

 In some uncommon cases, there will be an adjustment code and adjustment amount. 

  

 NOTE: Any sales summaries that include only Box A or Box D sales, and which have no adjustments to gain/loss, do not need to be included on a statement mailed to the IRS. 

  

 Here's how to mail your statements: 

 If you are e-filing your tax return, then mail your statements along with Form 8453 to: 

  

Internal Revenue Service 

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254 

[cathyt2015]

Hi Mark,

This is a wonderful response, but at this point, I prefer to make the corrections needed for the individual entries.  I am sorry that I did not make that clear.

I already know why companies might check the B and E designations.  However, in the past, I provided WF with a copy of all of my updated cost basis figures.  That is why each and every one of their figures is correct and identical to mine.  When I am re-entering the info for those investments that have Box E or Box B checked, I am re-entering the exact same amount , but in a different way.  Is there something wrong with this technique?  It was suggested on this Community site.

 If I have decided to take the correction path, are you saying that even though I am re-entering each individual B and E Box entry, I must still keep the phrase “Short term basis not reported to the IRS (noncovered)?.”  (This is my main concern.)

I previously went onto the WF site and had them electronically send the information from my WF 1099 to Turbo Tax.  That being the case, do I still have to upload a copy of my 1099-B to Turbo Tax for the IRS?  I prefer not to mail anything in if at all possible. 

Thank you for your help.  I also would appreciate a response from anyone who has made corrections to their own B or E.

Sincerely,

Cathy

[PatriciaV]

If you are manually entering or reviewing the information from Form 1099-B, you should not change the designation from the box reported on the 1099-B. The IRS receives a copy of this form and expects your entries to match those designations.

You need to mail a copy of Form 1099-B only if you are entering summary information. Again, the IRS will match your entries to the copy they received, so if you enter summaries, you need to prove the detail behind those totals. That's not necessary when you enter each transaction individually.