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posted Jun 21, 2020 9:32:01 AM

I will be submitting a "bad debt statement" to the IRS as an attachment to my return. Can I still e-file or do I need to file a paper return?

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1 Best answer
Level 15
Jun 21, 2020 9:38:17 AM

Attachments cannot be used with an e-filed tax return.  You would have to print and mail the tax return if you a required to provide a statement to the IRS.

If the IRS is not requiring an explanation for the non-business bad debt, there is no reason for you to provide one.  If the IRS questions the debt then they will send you a letter in the mail requiring proof of the short term capital loss.

1 Replies
Level 15
Jun 21, 2020 9:38:17 AM

Attachments cannot be used with an e-filed tax return.  You would have to print and mail the tax return if you a required to provide a statement to the IRS.

If the IRS is not requiring an explanation for the non-business bad debt, there is no reason for you to provide one.  If the IRS questions the debt then they will send you a letter in the mail requiring proof of the short term capital loss.