1099-B Worksheet CHECK THIS ENTRY: Sales Price is not within the prescribed upper or lower limits

[TheRealTax2]

I took the advice of the TT experts here and set 1d to 0 and negative proceeds as a positive basis. This worked and gain / loss did stayed the same. Did I just set myself up for a letter from the IRS due to reported 1099-b proceeds and basis not matching? If this is the case then customers should be warned that the suggested change will trigger an audit. We now have three brokerages that are reporting negative proceeds on 1099-b. What has to be done if it turns out that TT fixes it on the software side? Would i just amend the return using the original 1099-b unmodified values?

[fusor2005jhr]

You to fix the errors as you did or TT wont let you file.  You won’t be audited with zero errors in your return.  The brokerage companies should have fixed their files to follow the IRS new rules of no negative numbers. The end result after the fix is still a loss and your tax return refund/payment does not change, so no way can I imagine an audit being flagged. 

[ReneeM7122]

You're correct, the refund and payment do not change, and rounding is being done in accordance with IRS guidelines and instructions:

Here it is from their website (under "Computations": https://www.irs.gov/publications/p17/ch01.html  

Computations

The following information may be useful in making the return easier to complete.

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.

@fusor2005jhr

[BriGuy832]

Hi @MarilynG1 , if we do go that route, we still need to mail a paper copy of the 8949 to the IRS.  The only that I know of to get this would be to process the import from our broker, but that back up would reflect the original issue of the negative amounts in the 1d field (for proceeds), unless we manually changed all of them.

Will the IRS accept this backup, even though it will have the negative figures in 1d?

[fusor2005jhr]

I don’t believe you will have to mail a paper copy as TurboTax will get rid of all the errors when you do it my way. When you place a zero in the cost basis  and positive number in the proceeds you still will end up with a negative loss. You can see this in the table below the entry form in TurboTax. Simple math.  Again, it would’ve been nice if the brokerage firms had read the new IRS code and fixed their output for the TurboTax import.

[BriGuy832]

Hi @fusor2005jhr , You are correct, no paper copy will be needed if we go in and manually change everything. My question was directed to Marilyn, in response to her advice of going the "Summary" route, which wouldn't then include an 8949. I tried going this route, but then was told that a mailing for backup was needed.

[fusor2005jhr]

Makes makes sense. I don’t know how to do a summary in TurboTax but it matters not. I’m trying to reach Fidelity before they finalize their 1099, to fix the problem but I doubt I’ll get anywhere.

[quantbone2020]

@BriGuy832 

I was told the same thing -- that I had to mail in a physical copy of my 1099 because I had "adjusted wash sales" but the document is over 100 pages. This can be easily corrected if Turbo Tax releases the update (as it appears they have had done in the past few years). 

[fusor2005jhr]

I believe the problem is not with TurboTax but with your brokers 1099 that you import. The fact that you can manually correct the error in TurboTax means that the brokerage did not have the option cost basis in the correct field.

[pablomarchant]

goto form section, form 1099-B Wks, On the right ( Quick Entry Table) all negative numbers (probably options) will be highlighted yellow.

When I try to revise my numbers the page crashes. If I wait a few minutes it becomes responsive but the negative numbers don't get highlighted. If I scroll down, the page crashes again.

I opened tickets with my broker (TD ameritrade) and TurboTax, but both are just pointing at each other. At the end we just need to get this done. Any workaround for 1099-Bs that have a high amount of transactions?

[BriGuy832]

@pablomarchant  I too tried that method, and got the same results. What I ended up doing that was *somewhat* easier is to go through the main step-by-step process (not the exact titles, but hopefully it gets the point across: Wages->Investments->Broker), and then scroll down looking for each negative #. Edit that and click "Back" vs "Next", since Back saves the info.

I still have ridiculously long loading times, and the program goes through "Not Responding" messages after basically every adjustment made.

And as a reference, I had 186 of these errors, out of about 2500 trades.

Hope this helps.

[MarilynG1]

@BriGuy832 Form 8949 will reflect Summary Totals.  Attach your Brokerage Statement to it for mailing.

Click this link for more info on Mailing Form 8949 for Summary Statement.

[psciii]

I ran across this with data from Fidelity.  My fix was to enter  transactions manually rather than import it.  I entered the summaries for each class of gain or loss (for example short term with data reported to IRS).  This allows showing sales and cost which result in a gain or loss.  This gets around a sales or revenue field showing a negative number.

[fusor2005jhr]

I just downloaded TDA and will Fidelity in the future and then correct the errors manually in TurboTax. 

[TheRealTax2]

Issue should be fixed in today's TT software update