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New Member
posted Jun 7, 2019 4:00:14 PM

Turbo tax says I must mail Form 8453. 8453 wants me to attach Form 8949. One of my sales on Form 8949 says see attached statement.....do I need to attach a statement?

Sale included shares where the cost basis was not reported to the IRS.  Do I include a copy of my 1099-B? A statement of how a determined cost basis? Just the 8949?

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24 Replies
Level 7
Jun 7, 2019 4:00:16 PM

Yes, the attached statement that you need to send is your Form 1099-Bs (and/or other statement detailing transactions) with Form 8453.  Below is a more expansive answer on this topic.

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 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)

You need to use Form 8453 to mail the brokerage (or other) 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 

New Member
Jun 7, 2019 4:00:21 PM

Do I need to mail these forms after my return is accepted?

New Member
Jun 7, 2019 4:00:22 PM

Can the software please warn that using the summary method will force the user to physically mail additional forms. I would have filed them individually if I knew that.

New Member
Jun 7, 2019 4:00:23 PM

Exactly.  BTW, could I amend my return to file the transactions separately to avoid mailing form 8453?

New Member
Jun 7, 2019 4:00:23 PM

+1 to warning users about physically mailing additional forms.

New Member
Jun 7, 2019 4:00:29 PM

(Btw, to answer the question about amending the return to avoid mailing form 8453... I believe the amending form Form 1040X itself cannot be e-filed and must itself be mailed in. So it sounds like we'd need to mail something in either way once the "mistake" is made to file a return using the summary method.

See <a rel="nofollow" target="_blank" href="https://www.irs.gov/faqs/electronic-filing-e-file/amended-returns/amended-returns">https://www.irs.gov/faqs/electronic-filing-e-file/amended-returns/amended-returns</a> )

New Member
Jun 7, 2019 4:00:31 PM

Yeah, this is a pain in the neck!!!

Level 1
Jun 7, 2019 4:00:32 PM

There is now a note on the page, but the circumstances around this piece are still very confusing.  I apparently have to mail an additional form, even though my return already includes an 8949 with individual transactions.  This is apparently because I opted to take the foreign tax credit instead of deduction, which makes absolutely no sense.

New Member
Jun 15, 2020 11:40:02 AM

Hi @AnthonyC ,

 

Is this still relevant for 2020 (2019 tax year)?

 

I filled out all the transactions online, and even attached PDFs of the foreign transactions that were not reported to the IRS. (Box C and F transactions). As far as I can tell, IRS has all the necessary information - it would have received my 1099-Bs directly, and the PDF statements for transactions that were not reported on 1099-Bs (attached in Turbotax, I'm assuming they will be e-filed).

 

Thanks!

Neil

Level 1
Jul 11, 2020 9:15:34 PM

I see the cost basis is reported on the form, but turbotax still says there is missing info and I should send form 1099B. I don't understand why

Level 1
Feb 7, 2021 4:41:07 PM

The instructions on the 8453 form make it clear:

 

Don't attach any form or document that isn't shown on Form 8453 next to the checkboxes. If you are required to mail in any documentation not listed on Form 8453 you can't file the tax return electronically.

 

Form 8453 does not list 1099-B forms, so I can't e-file???

Can someone clear this up for me?

Level 1
Feb 7, 2021 6:49:09 PM

In most cases, if you required to mail form 8453 to the IRS, you still can file your return electronically, and print and mail the form to the IRS after you e-filed.

Level 15
Feb 7, 2021 8:35:52 PM

your details can be on form 8949, or something else that has the same information.

if you are attaching something else, mark the 8949 checkbox.

You must mail within three business days after your e-Filed return is ACCEPTED.

Level 1
Feb 8, 2021 7:29:26 AM

Thanks, Never would have guessed it.

 

Returning Member
Mar 1, 2021 9:48:16 AM

+1 to warning users about physically mailing additional forms.

Level 1
Mar 22, 2021 2:04:56 PM

Where in TurboTax do I find form 8453?

Level 1
Mar 22, 2021 2:07:20 PM

I need form 8453.  TurboTax is NOT providing it.  Why not?

 

Expert Alumni
Mar 22, 2021 2:29:25 PM

8453 is a form to send any required paper forms or supporting documentation. If you are required to send documentation, Turbo Tax will automatically include this form in your return to print and mail along with any other documentation you need that the form requires. If Turbo Tax hasn't provided it, then the form wasn't required.

 

What do you need the form for? Also go to tax tools>tools>delete a form.  See if it is listed in your list of forms. if using the software, go to the forms mode to check if the form is listed.

 

 

New Member
Mar 25, 2021 10:17:37 AM

If I get the message to send in form 8453 with Form 8949, do I send all pages (58 pages) of my 1099-B? Or, can I send just the summary page (page 49 in my case) showing sales proceeds and net gains/losses for both covered short term, noncovered short term, covered long term, and other transactions?

Expert Alumni
Mar 25, 2021 11:17:47 AM

@brwells13 Send a copy of the entire 1099-B showing the detailed transactions within 3 days of acceptance.

Level 4
Apr 11, 2021 3:29:21 PM

I am confused.  Many of the answers as to why Form 8453 requesting Form 8949 relate to:

 

1.  Individuals who did not enter their detailed transactions on Form 8949 and used the Schedule D "summary option."  OK so the IRS wants to see Form 8949 or "a statement with the same information" which like some of the answers say is a copy of your 1099-B.  The 1099-B would seem to be "a statement with the same information."  

 

But of course the IRS has already been sent the 1099-B by your broker. Which raises the question as to why you need to send another copy, on paper no less?

 

But since you could have filed a fully acceptable paper return using the summary option, why does e-filing not allow this?

 

I did not use the summary option but TT still printed the 8453 instructing me to send the 8949.  But since I completed 8949 is it possible that TT did not include the 8949 when e-filing?

 

Why would I need to send a paper copy of something the IRS already has both on my 8949 and from my broker on 1099-B?

 

Thanks for clarification.

Expert Alumni
Apr 11, 2021 3:46:38 PM

It depends. I would go ahead and send a copy of the 8453 along with the 8949 with the complete mailing instructions for compliance reasons. Before you do, go through your transactions to see if you indicated you will enter summary transactions rather than one by one. Also, please review this Turbo Tax link to see if you did not report each transaction on a separate row.

Level 4
Apr 11, 2021 5:02:39 PM

OK, I will send the paper forms as you suggest.

 

But it is still a mystery to me.  I did recheck, as you suggested, that I did not (for some accidental reason) select the option to aggregate some or all transactions.  Each TT 1099-B worksheet does allow such an option - aggregate some and report some transaction by transaction.  

 

All my transactions are exactly as reported by the brokerage firm - no aggregations anywhere accidental or on purpose.   It's purely transaction by transaction.  

 

Is the 8453 generated by TT?   It must be because it's done before the return is e-filed and before the return is accepted by the IRS.

 

If this is correct, I will guess that TT did so because it got confused over the entry of "various" for "date acquired" which is a 100% valid entry and exactly as the brokerage firm reported it on its 1099-B, though each individual sale is listed line by line.  Each with its individual "date sold (never various), proceeds, and cost" even if there were 2 sales of the same stock on the same day (which were not aggregated either).

 

So my best guess - which is very possibly wrong - is that this is a TT error.  This year TT seems to be having problems with the 100% valid and correct entry of "various."

 

Then I am also guessing that TT did include the 8949 in my e-file package?  It just thought "date acquired of various" meant sales transaction aggregation (even though that option wasn't selected)?

 

Thanks. 

 

 

Expert Alumni
Apr 11, 2021 5:25:34 PM

Yes, the 8453 is automatically generated by Turbo Tax and is sent after the return has been efiled. In answer to your question about the 8949, if this is a form in your return, then it did get efiled with the remainder of the return. I cannot comment specifically why it is being asked unless I looked at your return. You may wish to  Contact Us  for phone support for further information to troubleshoot this specific area.