Turbo tax told me after I filed my taxes that I need to send IRS form 8949 by mail once my return was "accepted". I have way too many stock trades to enter!

[brett-russell24]

I was told by a tax expert over the phone from turbo tax that since I was using the online version of turbo tax and couldn't upload all my trades from E-trade that it was okay to just post all my trades as one large transaction. Easy peezy right? Well he failed to inform me that once I filed my taxes I would be told to fill out form 8949 and mail it to the IRS. This form wants you to list every stock transaction. I told him I had a ton of stock sales in 2017 and he never once mentioned having to send in form 8949. I read online that you can send in form 1099 from your broker in place of this, but it is 2479 pages long! Turbo tax really screwed me on this one. I dont even know what to do at this point. Please Help

[BobinCT · Accepted solution]

OK, I think I have a workable approach that the IRS won't have trouble with. I assume that virtually all the transactions are "Box A" "Short term, Basis reported to the IRS".  For those transactions, fill out one line of 8949 labeling it "Box A transactions at eTrade (or whoever)" For purchase date "various" for sale date 12/31/2017.  Enter all the codes and adjustments amount as shown the broker's totals.

If you have any transactions other than Box A ones, then enter them individually.

Since the detailed info for Box A transactions has already been sent from your broker to the IRS computer, I think that will work out fine.

[brett-russell24]

Thank You so much, I was feeling pretty helpless on what to do, but this looks like a workable solution.

[TomYoung]

Go look at an actual Form 8949 here:

https://www.irs.gov/pub/irs-pdf/f8949.pdf

where you'll read

"Short-Term.
Transactions involving capital assets you held 1 year or less are short term. For long-term transactions, see page 2.
Note:
You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was
reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on   
Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions)."

If you're day trading - and you just about have to be - and you didn't adjust anything from what the broker reported, then you're done.

[brett-russell24]

Best answer I have gotten so far, thank you sir. That sounds promising I will have to look in to that. I called the IRS today also and they didnt have any answers for me.

[BobinCT]

But with day trading I would expect wash sales all over the place

[brett-russell24]

That is true, I know I have wash sales all over the place, so that would mean I cant do that then.

[EdwardK]

If you successfully e-filed your tax return(s), you should review IRS About Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return.

Per Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return,

The last box says, "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."

Thus, you could complete, print and mail Form 8453 and a copy of Form 1099-B. See "When and Where To File" on Form 8453 Page 2.

If you compared Form 8949 to Form 1099-B, they both would report the following for each sale listed:

• A Description
• Date Acquired
• Date Sold
• Sales Price
• Cost Basis
• Gain or loss for each sale
• A sale category based on how the sale was reported to you and the IRS

In some uncommon cases, there will be an adjustment code and adjustment amount.

[brett-russell24]

Thanks for trying to answer, but the problem is there is no way I can report each sale manually. It would take me 2 years to write all of that. That and I cant print my 1099. I priced the cost to print that many pages at fedex.com and it would cost $1770 before tax. What should have happened is the tax expert I talked to yesterday should have informed me that I would have to send in these forms to the IRS after I filed, and I would have upgraded to the desktop version so that I could have electronically uploaded my transactions from Etrade.

[BobinCT]

You might see what the broker would charge to print a complete 1099-B. In any event, I'm sure you can find someone who will print the complete 1099-B report for less than 50 cents per page!

[EdwardK]

I'm not sure if you already saw this link about the limitations for both TurboTax Online and TurobTax CD/Download but I wanted to include it so you would know for the future...I'm uncertain you could have used either product to import (assuming import feature functioned properly): <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899287-how-many-stock-transactions-can-turbotax-online-handle">ht...>.

[nicolemandrews]

Hi Brett, I'm in this same boat this year. How did you end up filing this last year?

[TaxHelper1]

What I don't understand is that if you mail a Form 8453 to the IRS, why do you need to also send a manual copy of the 1099-B when the 1099-B states that it was sent to the IRS.  So in essence, the IRS will then have two copies of your 1099-B.

If seems that adding the summary figures in TurboTax and mailing the 8453 and 1099-B to the IRS is really the only option when you have excessive transactions.  Using other TurboTax products does not seem to help.

**

TurboTax Online can handle up to 1,500 transactions per brokerage account. However, online performance may deteriorate as you get close to this limit.

If you have more than 1,500 stock transactions with a total sales volume of less than ten million dollars, you can switch to the TurboTax CD/Download software (which handles around 2,000 transactions per brokerage) or enter the transactions on Form 8949 using summary data from your broker statements.

[JamesG1]

The IRS is able to compare the enclosed brokerage statement against the summary that was reported on your tax return.  We can only presume that this process is more workable for the IRS than comparing your tax return to its1099-B master file.

See IRS Form 8453 and the last option listed on the form. 

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.

IRS Form 8453 is mailed to the IRS within three business days after receiving notice that the IRS as accepted the electronically filed tax return.  The IRS can then compare the brokerage statement against the the summary that was reported.

[fanfare]

Your covered transactions without adjustments can be summarized on Schedule D Line 1a and Line 8a.

Form 8949 is not required. No mailing is necessary.

there is no need to invent a description for this.

---

adjusted transactions are a different matter.

adjusted transactions have to be detailed.

 If you decide to summarize adjusted transactions, and e-File, you have to mail the transactions details to the IRS within three business day after your return is accepted.

Those are the IRS rules, I didn't make them up.