Attaching form 8948 to tax return instead of reporting individual transactions

[POCAHONTAS]

So instead of reporting each individual transaction on the tax return for stocks, I can attach form 8949 to the tax return and report the summary of the transactions so my question is, do I attach the summary the company provides with the 1099-B or do I have to obtain the 8949 and if I have to obtain it where do I get the 8949 from? Thank you in advance

[Lion]

See Schedule D Instructions

https://www.irs.gov/instructions/i1040sd#en_US_2021_publink1000308708

especially the section titled Specific Instructions:

Specific Instructions

• Rounding Off to Whole Dollars
• Disposal of QOF investment.
• Lines 1a and 8a— Transactions Not Reported on Form 8949
  • Example 1—basis reported to the IRS.
  • Example 2—basis not reported to the IRS.
  • Example 3—adjustment.
• Lines 1b, 2, 3, 8b, 9, and 10, Column (h)—Transactions Reported on Form 8949

[Rapid Robert]

Form 8949 is part of the tax return, you don't "attach" it, you include it with the return just like any other form or schedule.

"do I attach the summary the company provides with the 1099-B"

You either attach the 1099-B itself if you are merely including wash sale adjustments, or you attach the detailed report with the basis from the broker if the basis was not included on 1099-B.

The summary is reported on Schedule D. You do not attach any summary to the tax return.

[ATSMAN]

I have been attaching the 1099-B summary pages that has the short term and long term including wash sales. Basically 2 or 3 pages at the most. I used to attach the entire 1099-B with individual transactions and then at a seminar the presenter said it may not be necessary as long as the summary totals match what is on IRS records. They really don't care about individual transactions.

For company stock transactions I attach the supplement pages, that shows the adjusted basis.

[Rapid Robert]

Basically, there are two approaches:
1) follow the IRS instructions
2) do something in the way of Form 8949 and/or attachments, but don't worry because the odds that a human will ever look at your attachments are close to zero if the totals are within range of the AUR computer program.

[POCAHONTAS]

Thank you all I highly appreciate your response
Lion @ Rapid Robert I am sorry I did not clarify my question. So I have been reporting each transaction on the 1099-B on schedule D and it does generate form 8949 but recently due to covid I have gotten hundreds of stock transactions which are very time consuming and eye straining. So I decided to go the other route which allows you to report the summary provided by the stock company and attach 8949 and since its my first time I needed to make sure I do it correctly. Thanks again

[Lion]

Did you read the IRS directions that I linked you to, and the specific section that gives the two ways to report?

"1a and 8a -- Transactions Not Reported on Form 8949"

after the qualifications to use this method, it explains...

"If you decide to report these transactions on lines 1a and 8a, don't report them on Form 8949. You don't need to attach a statement to explain the entries on lines 1a and 8a and, if you e-file your return, you don't need to file Form 8453."

[Beersheba]

I have always used Form 8453 as a transmittal document sending to IRS for those voluminous 1099-B transactions, and entered the summary (by account number) on Form 8949. Listing hundreds of transactions on 8949 is ill-advised.

If anyone believes the IRS is reading those hundreds of transactions covered by Form 8453 - it is a delusion. They will simply compare the amounts reported on the tax return with the electronic information they have received from the brokerage firm.

[Lion]

That's why the IRS states "you don't need to file Form 8453." Now that's only for transactions that meet the qualifications in that section. You need to read further if your transactions do NOT meet the qualifications to use this method. My father used to tell me, "If all else fails, read the directions!"