Manually file after e-file? Form 8453 and 8949?

[le-kevin-n]

Which page can you enter the summary on?

[AnthonyC]

The answer below is going to assume that you choose to use the summary transaction method of reporting your 1099B transactions instead of entering individual sales.

Short Answer:  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 totals and not each individual transaction), in some cases, the IRS still wants the supporting details sent to them.  

Note:  In limited situations, you’re allowed to summarize investment sales without providing complete details.  If you are summarizing multiple investment sales that are either Box A sales or Box D sales, and there are no adjustments necessary (i.e. Code W for wash sales), then it is not necessary to mail in a statement with further details.  Turbotax will tell you this when your sales meet the criteria and will not prompt you to mail any statements.

So, if you are being prompted to mail further statements, Form 8453 says to attach Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949.

When you use the summary method, TurboTax only produces a Form 8949 with the summary totals that you entered, not the individual transactions, so the Form 8949 that is included in your return is NOT sufficient for this purpose.  (Though, you can include it with the mailing as a reference)

You need to use Form 8453 to mail the brokerage statements that show the details of your transactions.  Statements should include the following items for each transaction (these are usually reported on your Form 1099-Bs:(  

• Description
• Date acquired, 
• Date sold, 
• Sales price, 
• Cost basis, 
• Gain or loss for each sale,
• Sale category based on how the sale was reported to you and the IRS, and
• In some cases, there will be an adjustment code and adjustment amount. 

NOTE: As discussed above, 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. 

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

If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet).

https://www.irs.gov/pub/irs-pdf/f8453.pdf

[Dave-N-]

Why didn't TurboTax flag this issue during my return preparation or during error checking?  It would have been very simple for me to enter the individual transactions rather than the summary method, especially since there was only 1, had I known I would need to mail a separate set of forms.  There should be multiple warnings flagged during the preparation rather than after I already e-filed.

[rumsey-katelyn]

I agree! Was confused with the additional step after filing as well and would have corrected prior.

[laotour99]

Some better instructions would be good as the 8453 form only has Form 8949 checked.  If that is insufficient and that's all I send, what the heck will happen?  TurboTax should take it upon themselves to include instructions so that their customers won't end up with issues with the IRS!

[wch5908]

I am being prompted to mail Form 8453 even though my summarized sales do not include any  adjustments (i.e. Code W for wash sales).  According to the instructions above, TT should not be prompting me to mail Form 8453.

I also agree that better instructions at the point of data entry are needed so that we are not surprised after e-filing our returns that we must also mail in additional forms and documentation.  

[saugata0106]

Wow. Looks like I am not the only person who ended up here. TT should really do a better job at informing the implication of choosing the summary option.
I just had 2 sales and now I have to send paper work even after efiling 😐

[fanfare]

there have been posts that turbotax is sometimes calling for form 8453 when not needed.
Examine all the 8949s in your printed return, if any have Code M (Mail it in) that is the trigger for 8453.
If you don't have that code anywhere, there is nothing to mail.

[traderjosefina]

You read my mind. This is a MAJOR HASSLE to have to do this after the fact. TurboTax should have said "You will need to mail them individual transaction information later to a separate address from where you send payments."

There we thought we were done with our taxes only to discover there is this major administrative headache.

#turbotaxfail

[traderjosefina]

I never never mailed my actual brokerage statements to the IRS per "such as your brokerage statements (Form 1099B)" 

This is a huge failure by TurboTax not to have notified us about this. It is unclear to me if I can black out my personal information on the statements or what.

[taxrabbit]

+1 to warning users about physically mailing additional forms.

[franconia]

Just ran into this issue.

My 1099-B was having 5 pages of penny value transactions, all from a single stock. So I went the summary route to avoid having to enter hundreds of those "micro" transactions. Sure enough, got the annoying Form 8353 mail-in instructions after e-filing my return.

Decided I am not going to bother, as the gross proceeds (Box 1d) from the 1099-B comes under $10. Pretty certain the IRS is not going to waste time on this. If they do follow up, I know what to print and send in.

[bbmak0]

In the year of 2022, and I just filed my 2021 tax return. I got the same issue too. It would be better TT warn me that I need to file additional form if I use summary method. 

[Dave-N-]

Wow - three years later and TT continues to allow this unnecessary hassle to persist.  I guess they don't read these community messages!  It would be SO simple to fix this with a warning message when you select summary. Probably one line of code - maybe two.