8849 exception to reporting

[kathyc2]

Is there any need to attach pdf of 1099B transactions if they are all covered transactions with basis reported?

[Jiggers]

You mean the 8949? I never attach a .pdf to the return. No matter how many or what adjustments.

[kathyc2]

You mean the 8949? I never attach a .pdf to the return. No matter how many or what adjustments.

Yes. If there are numerous transactions on a 1099B I just enter the total for short and long and covered and noncovered and pdf a copy of 1099B for IRS. If the brokerage account already reported the basis to IRS, I was just wondering if anyone knows of any reason to send the 1099B.

[Burke]

It is not required.

[David1980]

Multiple exceptions exist

For the exception you are talking about where basis is reported to the IRS and you are not making any adjustments to the amounts reported on Form 1099-B you do not need to attach anything. The only thing needed is the entries on Sch D lines 1a and 8a. This is Exception 1 in the 8949 instructions - https://www.irs.gov/instructions/i8949/ch02.html#d0e414

There are other exceptions as well. Exception 2 lets you attach a statement containing all the same information as Parts I and II and in a similar format instead of manually entering the individual transactions. Information on Exception 2 in 8949 instructions - https://www.irs.gov/instructions/i8949/ch02.html#d0e443

You could use both exception 1 and exception 2 on the same return. Let's say you have some transactions where the basis is reported to the IRS - you would enter those amounts on Sch D lines 1a and 8a. However you also have some transactions where the basis was not reported to the IRS. You would follow the instructions for exception 2 for those transactions.

[AZ-Tax]

What about a trust tax return form 1041

It is not required.

What about a trust tax return form 1041 for which securities are covered and cost basis is reported to IRS? My tax software Pro Series gives me an error unless I attach the brokerage form 1099-B as a PDF to the return.

[Burke]

I see no reason for this requirement. The rules are the same. Is it preventing you from e-filing? Some "errors" are just warnings.

[AZ-Tax]

Error but.....

I see no reason for this requirement. The rules are the same. Is it preventing you from e-filing? Some "errors" are just warnings.

Error but not sure if I will be able to override the error when I actually e-file the trust return. While I prefer the IRS has a little data as possible, other then that, any harm to the Trustee?

[Burke]

I would not worry about it. I can't imagine why they would want all that extraneous information. If audited, it can be provided. That would be rare.