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!

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.

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

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.

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.

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

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

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.

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.

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!

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">https://ttlc.intuit.com/questions/1899287-how-many-stock-transactions-can-turbotax-online-handle</a>.

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

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.

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.

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.

Interesting that Form 8949 and 8453 are only required for "adjusted transactions."  So, if you received a 1099-B from your broker and had no adjustments from the submitted 1099-B, you are stating that applying the summarized totals on Schedule D Line 1a and Line 8a should suffice.

Do "adjustments" include the wash sale already stated in 1099B?

I'm also confused whether I need to mail anything to IRS after e-filing tax, with the option of summarizing all the capital gains/loss in one line.

Thanks.

The adjustments (if you have them) will be found in boxes 1f or 1g.   You need to mail Form 8453 with Form 8949 if you used summary data and have adjustments.  If you're e-filing, you only need to mail copies of your 8949 along with Form 8453 if:

• You entered a summary for one or more sales categories (instead of each individual sale); AND
• The sales category for one or more summaries is something other than Box A (short-term covered) or Box D (long-term covered); or
• The Box A and/or Box D summary includes adjustments (typically listed in boxes 1f or 1g on your broker statement).

Otherwise, if you entered each individual sale, or you entered summaries for Boxes A and/or D with no adjustments, don't mail in your 8949.

If you're required to mail in forms 8949 and 8453, do so within 3 days after the IRS has accepted your e-file. Here's the mailing address:

Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254

Tip: In lieu of Form 8949, you can substitute copies of your year-end broker statements that show the individual transactions. You don't need to include unadjusted Box A or Box D transactions.    @inin2012

Thank you @DawnC 

Looks like I either print the 30+ pages and snail mail the package to IRS or spend the next full day entering all the individual sale..just for that $89 wash sale! Fun time 🙂

Sorry I have further questions.

I read more articles, and relate to the answer I received here. It seems to me that the taxpayer is required to mail the statement to IRS only if the sale with adjustment is reported in a summary format.

My case is that I have all 300 sales reported on the 1099-B, and all of their cost basis was reported to IRS. 1 out of the 300 sales had an adjustment (code W) in column 1g in the statement.

If I choose to separate the sales without adjustment from the one with adjustment, meaning to report the 299 sales as a summary, and this 1 sale as individual sale, do I still need to mail the statement to IRS? If so, mailing all 30 pages or only the required page?

Thank you and appreciate all the help!

Although your explanation makes perfect sense to me, it is usually more efficiiant to just send the Form that they want and avoid the letter from the IRS agent who wants the form.  But it is up to you whether or not you decide to mail it.

Form 8949

entire 

@inin2012

Hi @MaryM428 

thanks! I believe the form 8949 is attached in my efile in TurboTax. The question is do I need to snail mail the 1099b or form 8949 along with form 8453 to IRS if I report the sale as what I stated in my previous post?

eliana

You are correct that it was efiled and you do not need to mail it.

@brett-russell24 

Sorry to bother you but I hope you can please assist me with sharing the outcome of your scenario. I find myself in a similar scenario and looking for some light.

What was the outcome of your situation?

Did you have to mail all 2479 pages to avoid itemizing each line item in the 8949?

Did the IRS accept your return and additional documents?

Thank you very much!

@hopes2120 

hello I can help with this partially as I just e-filed my tax. What I have done was to report the sale without adjustment in one line (as summary), and then the sales with wash sale (code w) in a separate line (as individual sale one by one). At the end the form 8949 was generated and included as part of the efile.

Based on the comment from tax expert in the thread, as long as you are not reporting the sale with adjustment in the summary format, you don't need to snail mail document to the IRS.