Mail Summary of Form 1099-B

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Topic Author
ygman
Posts: 8
Joined: Sun Feb 10, 2019 10:36 am

Mail Summary of Form 1099-B

Post by ygman » Sat Apr 13, 2019 8:42 pm

I filed my taxes today through FreeTaxUSA. Near the end, before I filed, I got the following message below.
Mail Summary of Form 1099-B or Broker Statement to the IRS
Since you entered a summary of your investment sales, you'll need to send the IRS a summary statement showing your individual sales transactions.

If you're e-filing, you'll need to send the IRS a summary statement after the IRS has accepted your e-filed return. Once your return is accepted, sign in to your account and print Form 8453. Attach your summary statement to Form 8453 and mail both forms to the IRS.

If you're mailing your tax return, be sure to attach your summary statement to your mailed tax return.
I received a Consolidated 2018 report (2018 TAX REPORTING STATEMENT) from Fidelity. It's a 16-page report and it says the information being furnished to the IRS throughtout the report.

This is my first time having investment sales on my return. Do I still need to mail this to IRS as suggested by FreeTaxUSA?


Thanks
YG

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FiveK
Posts: 6641
Joined: Sun Mar 16, 2014 2:43 pm

Re: Mail Summary of Form 1099-B

Post by FiveK » Sun Apr 14, 2019 1:50 am

ygman wrote:
Sat Apr 13, 2019 8:42 pm
I received a Consolidated 2018 report (2018 TAX REPORTING STATEMENT) from Fidelity. It's a 16-page report and it says the information being furnished to the IRS throughtout the report.

This is my first time having investment sales on my return. Do I still need to mail this to IRS as suggested by FreeTaxUSA?
No.
Entering the summary information for gains with basis reported to the IRS, with separate entries for short vs. long term gains, and not sending details, is what the national Tax-Aide organization suggests for their returns.

tomd37
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Location: Middle Tennessee

Re: Mail Summary of Form 1099-B

Post by tomd37 » Sun Apr 14, 2019 7:36 am

Agree with FiveK's response. I have used the summary information for years now and just advise the taxpayer to keep the investment statement for at least three years. If the IRS wants the information they will request it and the taxpayer will then have to provide a copy. As mentioned in the response, you have to separate the summary categories (e.g. short-term vs. long-term, basis reported to IRS vs. basis not reported to IRS, etc.).
Last edited by tomd37 on Sun Apr 14, 2019 11:59 am, edited 1 time in total.
Tom D.

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plannerman
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Location: NC Mountains

Re: Mail Summary of Form 1099-B

Post by plannerman » Sun Apr 14, 2019 7:38 am

Here's the guidance we got from headquarters:

"1099-INT, DIV, and OID
Some states require the payer EIN and address for Forms 1099-INT/DIV/OID. Those fields on the TaxSlayer entry pages are not required for the federal return and can be ignored unless your state requires that information. Please let your volunteers know if those fields are required for your state. If not required, the volunteer should skip those fields and therefore save the unnecessary data entry time."

plannerman

Topic Author
ygman
Posts: 8
Joined: Sun Feb 10, 2019 10:36 am

Re: Mail Summary of Form 1099-B

Post by ygman » Sun Apr 14, 2019 11:54 am

tomd37 wrote:
Sun Apr 14, 2019 7:36 am
Agree with FiveK's response. I have used the summary information for years now and just advise the client to keep the investment statement for at least three years. If the IRS wants the information they will request it and the taxpayer will then have to provide a copy. As mentioned in the response, you have to separate the summary categories (e.g. short-term vs. long-term, basis reported to IRS vs. basis not reported to IRS, etc.).
Thanks guys. This will save me a trip to the post office, not a place I want to be tomorrow. :D

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