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Hundred pages of trades

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    Hundred pages of trades

    This new statement has a very tidy summary with all the required figures on it, Short term, Long term, A's and B;s...

    Is it still necessary to send in the details? I have no desire to print 105 pages, and I am confident the IRS has no desire to receive them.

    With the new requirement for cost basis, and this new summary, are you still mailing in the VERY LARGE detail pages with the 8453?
    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

    I will watch this with interes

    because I am not sure. I am not sure what is the most trades I have had on one return but I have never had so many that I was more than slightly tempted to go with the "enter a summary and mail in the details" option. However this year's Drake software will permit you to attach a pdf to an electronically filed return which should make the aforementioned option more attractive.

    Personally I think the IRS requires sending in of right much that never gets looked at. I think that is why we all get the occasional letter asking for something that was required to be, and was actually, sent in previously.


      Schedule D

      I have alway's (for over 30 years) only included a summary - such as XYZ Brokerage l/t and XYZ s/t. I have NEVER sent a copy of the brokerage statement to the IRS - I figured I would If I ever get asked for it. So far, I have NEVER been asked for it. I keep them in my file with other tax information just in case. I just verify that the total selling prices from all of the statements and costs agree with each other. I plan to continue this method until I hear from the IRS that they need a copy of the statement.


        I do the same as Traveling EA. No problems.


          I try to get an Excel spreadsheet from the broker to import. I've had 4,400 trades, most wash sales, and other fat statements. Currently I have one statement with 99 pages and another with 123 sitting in my stack. When I've had to use summary information, I have mailed in the broker statement with Form 8453. I don't want my client getting an IRS letter and thinking I did something wrong. (I might think differently if the letter would come to ME instead of my client.)


            Letter from IRS to Client

            I generally let the client know what I am doing. I can input their trades and charge them an hourly rate to do this, or use a summary. I also let them know that they may or may not (the likelyhood, in my experience has been not) get a letter, then to let me know. They are willing to assume the risk of an IRS letter with no balance due vs. the time it would take me to do the trades for them. To me it is a waste of time. Until the time I get something from the IRS saying I cannot report the way I do, and include a brokerage statement, I won't have my clients waste their money, or my time that can be used for tax advise not keypunching.


              The comparison is not between data entry and summary (I convince my clients to get Excel spreadsheets from their brokers by making that comparison!) but is between summary and summary plus mail the statement with Form 8453. Your software will generate Form 8453 and your client will mail, so you have no additional time. If your client chooses not to mail and receives an IRS letter, it's his fault and not because you didn't give him everything.


                Trade Detail


                What software are you using?

                Drake allows us to upload a PDF attachment to the return for submission with electronic filing.

                So you don't want to scan 105 pages?

                The client should be able to download the document in PDF format. I am not talking about exporting to Excel, or to any other format that you might then be able to import into your tax software. If the client brought you a 1099-B that consists of 105 pages of detail, in paper format, then that very same document should be available as a PDF download from the broker's online platform.

                Apparently not all tax software has this option.

                If the attachment is not an option for you, then I tend to agree with Lion's comments above. The client can choose to accept responsibility for photocopying and mailing all those pages. It really isn't that expensive. It can be done at Staples or Kinko's/FedEx. It's time consuming and annoying. If the client wants you to do it, then charge additional fees for that work.

                Burton M. Koss

                The map is not the territory...
                and the instruction book is not the process.


                  I enter each one, one by one

                  I charge the client $5 for each entry. One client's bill (500 trades) was over $2500. He fussed but hey, my time is just as important as his right?

                  I did wonder why I lost 300 clients this year.

                  I'm only joking! I have Drake and use the Attach PDF option (scan the docs and attach to the return). My goodness this topic drives me crazy! If the gross sales are reported correctly, the realized gains/losses match with the 1099B, wash sales are accounted for, then where is the disconnect with the IRS?

                  And why the ridiculous form 8949 (covered, non covered), madness. What if the cost basis on a covered transaction is incorrect? I've had two this year so far (great discrepancies on an ISO transaction). You can make a basis adjustment but should I expect a letter from the IRS?

                  We need to sign a petition or something to get this junk simplified. It is a time waster, and the additional fee to the client is punitive. They can't prevent their broker of a managed account from making 100's of trades. The whole system is a mess.

                  Stepping off the soap box.....crawling back into my hole now. Good luck this season guys/gals!
                  Circular 230 Disclosure:

                  Don't even think about using the information in this message!


                    Amen, Brother!

                    I'm going to attach the docs and do the summary, but I'm with you. Why report all the trades when the simplified summary says it all?

                    And why sequester when there are refundable tax credits available? You will never stop the bleeding as long as there are refundable tax credits. That's where the bleeding begins. It's like throwing blood into a pool of sharks.

                    Ok, I'm off my soapbox and back to work.
                    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey