Attaching brokerage statement to efiled federal tax returns

[FEDUKE404]

Never mind.

[Rapid Robert]

The attachment is meant to be a replacement for details entered on Form 8949, so with that in mind:

#1 - 15 pages. If you look carefully, I predict only those pages are officially labeled "1099-B". The summary pages, and the INT/DIV pages are not so labeled.

#2 - I'd say "no", but I don't think it matters much one way or the other. As long as all the detail is there.

#3 - No, just the opposite. If basis is reported and there are NO wash sales, you don't even need to fill out Form 8949, just Schedule D Lines 1a/8a. (This works for almost all of my clients). If you have wash sales, then you need the details that would normally be on Form 8949, so if there are a lot of them, use an attachment to show wash sale details. However, if wash sales total less than about $20, I just ignore them and use the direct Schedule D summary entry with no attachment.

[Lion]

I have my clients get the Gain/Loss statement from their broker in Excel format, or something that can be read by Excel, such as .CSV format. With the fees they pay to their brokers, they deserve the service. I word it something like, "In order to save me time which saves our mutual client money spent on tax preparation fees..." Then I just import, which includes the wash sales which I find are numerous when the brokerage statement exceeds about six pages. Makes proofreading soooo much faster. I have one broker who says his company cannot convert their database report to Excel, so I list the wash sales and go the .pdf attachment route. (That broker changed companies, so I'll try to talk to him again when my client brings in her documents.)

[Lion]

Did you receive your client's documents electronically? If so you can print to a .pdf only the pages you need and have it available to attach to your return for e-file.

I have a lot of investors with managed accounts, so lots of trades, and wash sales. I think my most have been 8,000 and 4,000 from a client who was a broker who traded constantly, so LOTS of wash sales.

[rbynaker]

PDF utilities are a dime a dozen. A few that I know of: PDFill, CutePDF, BullZip. It's pretty easy to strip pages or merge files. Most have many more utilities as well (reorder, rotate, convert, crop, etc.)

[Anarchrist]

Don't attach anything. There's no need to, it's just a waste of time and effort.

On the 8949, put the broker name in the description column, use code "M" for multiple entries in the code column, and leave it at that. I haven't attached a list or the broker statement for a decade. I haven't even seen this discussed in a couple years, but when it use to come up, there were always a bunch a people who stated they didn't attach anything and never had any issues.

[Rapid Robert]

People forget sometimes that it hasn't been that many years since PDF attachments have been allowed. Before that, what a pain to mail paper documents to some warehouse in Austin TX or wherever. I remember doing that on multiple occasions. (For that matter, the introduction of Form 8949 was a huge improvement over Schedule D-1).

As a tangent (so please stop reading now if you can't stand a tangential discussion), I sometimes wonder what happens to tax return attachments that either by mistake or on purpose are actually not related to the tax return at all. I suspect, as I'm sure do many of you, that no human actually looks at these things on a routine basis, so maybe anything goes if they never examine it. For example (all examples could be deliberate or unintentional), what if someone uploads another client's docs? Or something scandalous, like pornography (text or images)? Or copyright-protected materials? Or descriptions of potentially criminal activity, either past or future? Are there any laws regarding this?

Is the upload capability included with any consumer-oriented (self-prepared) software? Or do only tax pros (EROs) have this capability?

It would probably be pretty easy to set up AI software to analyze tax return attachments and determine if they look like stock sale transactions or something else.

[BOB W]

Since it was brought up and I didn't want to say it before, but I never attach anything. I view the broker's statement, which is already divided into the proper segments, and enter the sales and cost basis per the statement. And yes, I use the broker's name and add the word "statement" ( Per Fidelity Statement) I have NEVER had any problem doing this. I would say it has been 10+ years with no problem ever....

[Bucky]

I do the same as Bob; no attachments just short term long term covered and non covered. Been doing this forever with zero issues. It's not like human eyes are seeing 98 percent of what we file electronically.
If there are less then 10 transactions usually will list them out. I am usually pretty anal but when it comes to these transactions not so much. now if i have a basis issue like inherited or gifted stock and the basis being reported is incorrect I will list separately.
.

[spanel]

Add another to the list of just short/long covered/non covered summary. Never had any problems either.

Chris

[BOB W]

Just an added note. I do review all the listed detail for missing cost basis (not uncommon) and try to get to the bottom of it. If client has no answers then it goes in as shown on statement. (no proof, no basis)

[Anarchrist]

I'm surprised some are still attaching 8949 transaction details. I thought everyone stopped doing that years ago.

[Lion]

Years and years ago, you had to mail the statements. Years ago you could attach a .pdf to the e-file. Now I can import, including all the wash sales. Also, if you have something like CCH's Scan & Flow that converts the statements into Excel and "flows" the data, it's even faster and easier.

[Burke]

I'm surprised some are still attaching 8949 transaction details. I thought everyone stopped doing that years ago.

I did and have never had any issues. This was even when they were mailed to Austin. I think I did it for 2 years, then quit. I also use name of broker, i.e, Fidelity Portfolio, and make the appropriate summary inputs on 8949. Especially if it is a joint return so info flows thru to state properly.