For 2016, if I enter non-covered transactions separately on Form 8949, do I no longer have to make a separate mailing of the Form 8949 and Schedule D to Austin, TX?

[colonel_biggs]

Do I understand correctly that for 2016 if I enter non-covered transactions separately on Form 8949, and enter summary totals for covered transactions on Schedule D that I no longer have to make a separate mailing of the Form 8949 and Schedule D to Austin, TX after e-filing?

[AnnaB · Accepted solution]

Yes, you only have to mail the form to the IRS if you don't detail the transactions.

[colonel_biggs]

Thank you, AnnaB!  Has this policy always been the case with the IRS, or is this new for 2016, because of better transaction reporting procedures by the brokerage community?

[AnnaB]

It has always been the case since e-filing has commenced.  Some people have hundreds or thousands of transactions and this is easier than typing them in.

[colonel_biggs]

Does this mean that if I "bundle" my covered transactions (about 100 in number) on the Schedule D, that I still have to mail in a Schedule D to Austin with a breakdown?  I have been under the impression that this year the IRS is able to match up the covered transactions reported on the Form 1099s, hence covered transactions can be summarized on the Schedule D, but a breakdown of the transactions does not physically have to be reported by mail.

[AnnaB]

As far as I am aware, yes.  Any "bundled" transactions must be mailed to the IRS with Form 8453 as a transmittal along with your broker's statement showing the detail.  The IRS does not receive detail on covered transactions.  The difference is that broker's have to track the basis of covered transactions.

[colonel_biggs]

In looking at the standard Form 1099-B that brokers typically send out to customers, there is a clause printed at the beginning of the statement that says that this information is sent to the IRS.  It also states that non-covered transactions (also shown) are not reported.  I was hoping that this year the IRS would simply match up the sums from one's  bundling entries of covered transactions on a Schedule D with the same figures reported on the Form 1099-B, thereby eliminating the need to send hard copies of covered transactions to the IRS.  Wishful thinking?   🙂  Thanks for your help!

[AnnaB]

Just like the IRS gets our W-2s....You're Welcome