Form 8453

[Jamimo]

This is the first year that TurboTax generated a Form 8453 for me with Form 8949 (Sales and Other Dispositions of Capital Assets) checked. Form 8949 was electronically filed but I just noticed it says "Vanguard-See attached statement". The gains are in VG mutual funds and I received a 1099-B with Box A checked (indicating basis was reported). I don't think I need file this with a schedule listing all individual transactions, but I'd like some confirmation. If you are a TurboTax user, is there something I should do differently to avoid this in the future? Thanks for any insight.

[RayW7]

Yes,  upload your entire 1099 composite, including transactions into TurboTax.  Then you should not be asked to mail 8453 for 1099-B summary statements in the future.

If you reported your investment sales using the summary total method, then you will have to send supporting documents (I.e Form 1099B).  Its possible you may have chosen this method unintentionally as it is usually reserved for taxpayers with large volumes of transactions who don't want to list every transaction or are unable to import because of the volume.

You do not really need to mail Form 8949, but you do need to mail your supporting statements, such as your brokerage statements (Form 1099B) and Form 8453.

When you use this summary method of reporting (i.e. you just entered your summary totals and not each individual transaction), in some cases, the IRS still wants you to send the same details that are shown on Form 8949 (i.e. sales date, cost, sales price, adjustments, etc) but they allow you to send supporting statements instead of actually filling out every single transaction on Form 8949. 

Most people send their 1099-B forms received form their brokers as these usually contain all the information for the transactions

.  

Note:  In limited situations, you’re allowed to summarize investment sales without providing complete details, but TurboTax will tell you when your sales meet this criteria and will not prompt you to mail any statements.

[fanfare]

@Jamimo 

Here's the real scoop.

IRS says:

Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.

Based on what you said, since you did not mention adjustments,

you are done.

Note: there is no exception for transactions with adjustments, or for the other Sales Category Boxes.

Details are only mailed if your e-Filed forms show summary totals for that box category.

Does your 8949 that says "See attached summary" show adjustments in column(g) ?

If not, Turbotax is giving you the mailing notice improperly. This has been known to happen.

Note: it is possible to end up with adjustments on mutual funds, if you sell in late December after a reinvested dividend happens.

--

If you have wash sales, it gets more complicated since those adjusted transactions have to be itemized on Form 8949 and the summary totals adjusted accordingly.

Enter the wash sales on Form 8949, then use the subtotal results on the bottom of that form (Line 2) to know how much to subtract. Be sure to NOT check the adjustments box in the summary window.

Details are not mailed if you supplied the details on the e-Filed Form 8949.