8453 or pdf

[marlenew]

I use ProSeries and if more than a few stock transactions I scan and add as an attachment...works great and up to now the attachments were maybe 5 to 15 pages. Now I have a return with over 60 pages of stock transactions and not sure what is best (due to the volume)...attach as pdf or mail in with form 8453. Just wondering what anyone else is doing with a large volume. Yes...if case your wondering..all totals are entered properly on the forms 8949 with brokerage account numbers for the various accounts.

[Koss]

PDF Attachment

I don't think one or the other is "best" or "better." Quite frankly, I don't think the IRS cares. I think that most of the time, no one at the IRS looks at those attachments, whether they are PDFs or paper, unless the return is flagged for some other reason. (Or unless the total sales proceeds on the return is less than the total reported on Form 1099-B.)

At my office, we do everything paperless whenever it is possible. For a 1099-B with 60 pages of transactions, I would have asked the client to provide it to us in PDF. I would allow the client to log into the account from my computer, save the PDF on my desktop, and then log out and close the browser. In this manner, I would be able to attach it without even having to scan it first.

If your scanner is slow or clunky, or if it cannot scan double-sided documents and preserve the page order, then maybe it would be easier for you to just mail it. But I don't even think the IRS would care if the pages were out of order in the PDF.

The other reason I would ask the client to give me a PDF file is because I would want to keep a copy. No, it isn't required, but if you can get it, I think it's a good idea.

But I sure wouldn't want to keep a paper copy. LOL We don't even keep a paper copy of Form 8879. We scan it, back it up, and after tax season we shred it.

BMK

[appelman]

What about a CSV file?

Most brokers will provide one, and you can import it directly with most software.

[marlenew]

I used to import but now with the covered and noncovered trades and clients who have 6 or 8 brokerage accounts, I found myself spending a lot of time after the import to make sure the 8949 totals were all entered correct due to box A,B,C as well as short term and long term. I like the idea of getting a pdf from the broker to save time scanning it in and simply entering the totals on the 8949 as per the 1099B statement. Thank you for the suggestion but I have one question...I would only scan in the stock trade pages...How to you handle when the broker sends you the entire 1099B with all the supplements, etc?
Do you send the complete file as a pdf or only the trade pages? We're close to the end of this tax season but looking for a better way next year to save time.

[Koss]

Attachments

How to you handle when the broker sends you the entire 1099B with all the supplements, etc? Do you send the complete file as a pdf or only the trade pages?

I just send the entire PDF as an attachment. It may contain some excess information that is not required. I don't see that as a problem. The extra information in there is often meaningless. If it has any real value, then it is information that the IRS would have access to anyway in the event of an audit. It is not sensitive information that needs to be removed.

With that being said, you can sometimes selectively remove certain pages from a PDF by using the full version of Adobe, or certain other programs. The party that originally created the PDF has the ability to block operations that separate the pages.

BMK