Statement Explaining Differences and Adjustments Between Form 8949 and 1099-B

The Form 8949 report menu provides an option to Include Statement Explaining Differences and Adjustments Between Form 8949 and 1099-B. 

 

 

 

Selecting this option will include a one page statement with your TradeLog generated Form 8949 report. This statement highlights why 1099-B data cannot be used to complete Form 8949, and identifies specific situations that apply to your reporting, then explains how your Form 8949 was generated for accuracy. An example of this statement is shown below.

 

 

 

 

The statement generated by TradeLog explains important facts about how the Form 8949 was produced and situations that are particular to this taxpayer which may result in differences with what was reported on 1099-B. The statement also explains why 1099-B data cannot be used for accurate preparation of Form 8949 for most taxpayers.

 

TradeLog automatically checks the situations that apply to this Form 8949 based on variables in the trade history, or selections by the taxpayer.

 

A taxpayer may choose to file this statement with their tax return as supplemental information. This is in harmony with direction in the IRS Instructions for Form 8949 for taxpayers to attach a statement explaining differences in wash sale reporting (See 2023 IRS instructions for Form 8949 page 7). Or the statement may be provided to a CPA or tax preparer for explanation and use as they see best.