cpabakem01[at]yahoo.com wrote:

- quote -

(snipped a lot)

thankyouThankyouThankyou for posting that. This has always
been the way I've viewed the matter, and thank GOODNess
Merrill Lynch does list the trades in the required format
for attachment.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

MACPA (Michigan Assoc. Of CPAs) Q & A Recent Meeting with
the IRS. There has been a lot of discussion of this on many
message boards.

Question - When completing a Schedule D, we are currently
entering stock transactions from brokers or copying reports
from brokerage firms and writing "see attached schedule"
using totals from the reports. Is it possible when e-filing
to write for example, "Merrill Lynch trades" using totals
and not attaching the detail or must we enter every trade or
if totals are allowed must we send detailed reports
separately with Form 8453? Currently I am paper filing the
returns that have hundreds of trades and attaching the
schedules.
__________________________________________________ _______________________

Answer - The Individual Electronic Filing Branch is
following the exact same reporting instructions for an
e-filed Schedule D as outlined in the Form 1040 instructions
as a paper return. There is no deviation. "Broker house
statements are not allowed to be attached to a paper filed
return either, unless they are in the exact same format as
the Schedule D, per the form analyst, Jeffery Arre. However,
we have been told from practitioners that in paper
processing these types of returns are accepted.

In TY 2002, Individual Electronic Filing created two new
records that would allow a taxpayer to report up to 5000
short and/or long term transactions on an e-filed Schedule
D. Each transaction on the e-filed records must be filed
separately, just like the paper version D-1, per the form
instructions which states an investor or trader must report
each sale/transaction on the Schedule D or on an attached
statement containing the same information for each sale in a
similar format.

It is not permissible to e-file a return with the lump sum
sales prices and lump sum cost shown as a line description
of Schedule D that reads, "see attached" with gain and loss
statements attached to the Form 8453. Thus the proposed
resolution to attach broker house statements to the Form
8453 is NOT a forms requirement. This is the official policy
for the Individual Electronic Filing Office as of September,
10, 2004.

The Service is looking into some future changes that would
alleviate the ERO/preparer from inputting each stock
transaction separately. One of the items in discussion is
working with brokerage firms and software providers to
develop an electronic version of the brokerage statement
that is transferable to the electronic return. Currently,
the USDA has an electronic W-2 that is transferable into
software, thus eliminating the need for manual input of that
information.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >