Attaching substitute broker statements to electronic files (1040)

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Most brokers issue their own substitute statement for Form 1099-B, Proceeds from Broker and Barter Exchange Transactions to report capital gain and loss details that are reported on Form 8949, Sales and Other Dispositions of Capital Assets.

Entering data for substitute broker statements (Schedule D transactions)

The following are the data-entry guidelines to create the substitute broker statement.

  1. In the Screen B&D in the Income folder, click the statement dialog button for the Schedule for detail field, or in Screen Broker, Broker and barter exchange transactions: Proceeds statement.
  2. In the statement dialog, enter "See attached" plus additional descriptive information, if applicable, in the Desc field.
  3. Enter the total amounts of capital gains and losses.

    Notes

    • Enter separate summary statement items for short-term transactions and for long-term transactions. Enter codes 1 (Short-term), 2 (Long-term), or 3 (28% rate) in the Force column to indicate the holding period.
    • If multiple items exist, enter the summary statement items within the first 10 rows of the statement to ensure proper processing by the IRS.

Attaching Portable Document Format (PDF) broker statements to electronic files

To attach a PDF file of a substitute broker statement to electronic files, follow these steps.

  1. Scan the substitute broker statement for Form 1099-B and save the copy to a location on your computer or computer network.
  2. Rename the scanned statement to "Form 8949 Exception to reporting" followed by the broker's name.

    Note: The IRS recommends that you name the PDF attachment of the substitute broker statement "Form 8949 Exception to reporting" followed by a name to identify the broker. The naming convention is important when you scan substitute statements that you attach to electronic files.

  3. Open the client's return in UltraTax CS, and choose Edit > Electronic Filing Attachments.

    Note: If Electronic Filing Attachments is not enabled, mark the File this return electronically field in Screen ELF in the Electronic Filing folder for the client's return.

  4. Click the Add button.
  5. In the Product field, select Federal from the drop-down list.
  6. In the Return field, select Tax Return, if not already entered.
  7. In the Attachment title drop-down list, select Form 8949 Exception to reporting <enter name> and change "<enter name>" to the broker's name.
  8. Click the File option and click the Browse button to navigate to the location of the substitute statement you want to attach.

    Note: If the file was not saved as a PDF file, the file will not be listed when you click the Browse button.

    If you are licensed for and have FileCabinet CS installed, you can also mark the Save a copy of selected file in FileCabinet CS checkbox to store the selected file as a FileCabinet CS document.

    If the document was scanned into FileCabinet CS, click the FileCabinet CS option and then click the Select button to select the appropriate document. The document will be attached as an embedded PDF that is stored in FileCabinet CS.

    Notes

    • You must be licensed for FileCabinet CS and have the application installed to store documents in FileCabinet CS.
    • If you are running UltraTax CS through Virtual Office CS or Software as a Service (SaaS), you can navigate to files on your local network. Your local drive will be listed with a $ after the drive letter (for example, C$ on Client V for your local C drive).
    • If you want to proforma this attachment next year, mark the Proforma information to next year checkbox.
  9. Click OK to return to the Electronic Filing Attachment dialog. Repeat steps 4 - 9 to add more attachments.
  10. Click the View Attachment button to view the PDF file that will be included in the electronic file.
  11. When you are done, click OK to close the dialog. Now, when you create the electronic file, the attachments will be included as part of the file.

UltraTax/1040 produces an Electronic Filing - PDF Attachment Report that lists the PDF files, including the title of the PDF files and the attachment source of the files, that you have attached to the electronic file for each return.

Related topic: Attaching Portable Document Format (PDF) files to electronic files

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