Do I absolutely have to mail Form 8453 along with a summary of stock sales for tiny profits?

So I'm trying to figure out if I'm really required to mail in Form 8453 with my stock sales summary. I only made a pathetic $14.75 in profits from some trades I dabbled with last year (first time investor, clearly not killing it lol). My tax software is telling me I need to print and mail this form with my stock transaction summary, but that seems ridiculous for such a tiny amount. It would cost me almost as much in postage and printing as I made! Does the IRS actually care about documentation for such a small amount? Seems like a waste of everyone's time. Has anyone skipped this step for minimal gains and been fine?

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22 comments

Jayden Hill

•8M

Tax preparer here. Unfortunately, the requirement to file Form 8453 doesn't have a minimum threshold based on the amount of profit. The form is required when you have certain supporting documents that can't be e-filed, including detailed stock transactions that weren't reported on Form 1099-B. The IRS doesn't make exceptions based on the dollar amount involved. Even though $14.75 seems insignificant, technically you still need to follow the reporting requirements. The form serves as verification of your electronic filing and provides the supporting documentation the IRS might need.

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Jayden Hill

•8M

While the IRS typically focuses enforcement efforts on larger discrepancies, they can technically assess penalties for non-compliance regardless of the amount involved. The penalty for not providing required documentation can be $50 per instance. Keep in mind that your brother-in-law's situation might be different - his stock sales might be fully reported on his 1099-B with basis included, which wouldn't require the additional documentation. Each tax situation is unique, and what works for one person might not apply to another.

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Lucy Lam

•8M

This is exactly why I started using taxr.ai last year when I was dealing with a bunch of stock trades. I had a similar situation where I needed to figure out if I had to mail in all this documentation for relatively small gains. Spent hours trying to understand the requirements until a coworker recommended https://taxr.ai to me. You upload your tax documents and it analyzes everything, tells you exactly what forms you need to file and how. It specifically told me which transactions needed the 8453 documentation and which ones were already fully reported on my 1099-B. Saved me from sending unnecessary paperwork for trades that were already properly reported with basis.

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Lucy Lam

•8M

Yes, it works specifically with stock sales and trading documentation. You upload your 1099-B and it analyzes each transaction to determine which ones need supporting documentation and which are already fully reported with basis information. It's especially helpful when you have multiple brokerages or a mix of reported and unreported basis information. Regular tax software tells you that you need to file Form 8453, but often doesn't clearly explain which specific transactions require documentation and which don't. That's where taxr.ai helps - it breaks down each transaction and tells you exactly what documentation is needed for compliance without over-filing.

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Zoe Wang

•8M

Update on my skepticism about taxr.ai - I gave it a try after posting my comment above. I was pleasantly surprised that it actually cleared up my confusion about Form 8453. Turns out I only needed to submit documentation for 3 of my 28 stock transactions because the others already had basis reporting on the 1099-B. My tax software was making me think I needed to document everything, but taxr.ai showed exactly which transactions needed the extra paperwork. Saved me from sending in a 15-page document when I only needed 2 pages. Worth checking out if you're dealing with multiple stock trades.

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Connor Richards

•8M

If you're struggling to get answers about Form 8453 requirements, good luck getting through to the IRS by phone. I spent THREE DAYS trying to get someone on the phone last year about a similar issue. Then I found Claimyr at https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they got me connected to an actual IRS agent in about 20 minutes. The agent confirmed exactly which forms I needed to send in for my stock sales and which were already covered by my 1099-B reporting. Saved me from sending unnecessary paperwork. If you want a definitive answer straight from the IRS without wasting days on hold, it's worth checking out.

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Connor Richards

•8M

They use technology to navigate the IRS phone system and wait on hold for you. When an agent is about to come on the line, you get a call connecting you directly. You don't have to sit through the hold music or automated menus. You absolutely could keep calling yourself, but the average wait time is 2+ hours when you can even get in the queue. Most people get the "due to high call volume" message and get disconnected. I was skeptical too until I tried it - it's basically paying a small fee to have someone else deal with the hold time instead of wasting your own day.

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Steven Adams

•8M

I'm embarrassed to admit this, but I owe an apology to Claimyr and Profile 6 above. After posting my skeptical comment, I was so frustrated with my IRS situation that I decided to try it anyway. Used their service yesterday and got connected to an IRS rep in about 25 minutes. The agent confirmed I only needed to send 8453 documentation for trades where the cost basis wasn't reported to the IRS on the 1099-B. For fully reported trades (which was most of mine), no additional documentation was needed regardless of the profit amount. Relieved to have an official answer directly from the IRS after weeks of confusion.

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Alice Fleming

•8M

The risk vs. reward calculation here is pretty simple. The "penalty" would be minuscule even if they did catch it, which is extremely unlikely for such a small amount. The IRS processes millions of returns - they're not checking if every person with $15 in stock gains filed their supporting paperwork. I understand wanting to do everything perfectly by the book, but in practical terms, the world doesn't fall apart over documentation for tiny amounts. Everyone makes their own risk assessment.

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Jayden Hill

•8M

Form 8453 is specifically for e-filing, not paper filing. It's used when you e-file your return but need to submit supporting documents that can't be transmitted electronically. For paper filing, you would simply include all your documentation with your paper return. The $200 amount isn't what determines if you need Form 8453 - it's whether your trades have basis information properly reported to the IRS on your 1099-B. If all your trades have complete basis reporting, you likely won't need to submit the additional documentation.

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Lukas Fitzgerald

•5M

I went through this exact same situation last year with about $25 in stock profits. After reading through all the comments here, I decided to call the IRS directly (yes, it took forever to get through). The agent told me something that might help clarify things for everyone: The key isn't the profit amount - it's whether your broker reported the cost basis to the IRS on your 1099-B. Look at your 1099-B form and check if there's basis information included. If it shows "basis reported to IRS" or has the cost basis filled in, then the IRS already has all the information they need and you likely don't need Form 8453. However, if your 1099-B shows the sale proceeds but NOT the cost basis (common with older accounts or certain types of trades), then yes, you need to send Form 8453 with documentation regardless of the tiny profit amount. For my $25 situation, it turned out my broker HAD reported the basis, so I didn't need to send anything extra. Check your 1099-B first before assuming you need to mail anything!

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Aisha Mohammed

•17d

This is really helpful information from everyone! I'm dealing with a similar situation but with crypto trades instead of stocks. Made about $45 in profits from some Bitcoin trades last year and my tax software is also telling me I need Form 8453. From what I'm reading here, it sounds like the key is whether the exchanges reported my cost basis to the IRS. Most crypto exchanges don't provide 1099-B forms like stock brokers do - they usually just give you a 1099-K or their own transaction summary. Does anyone know if the same "basis reported to IRS" rule applies to cryptocurrency transactions, or do crypto trades automatically require the Form 8453 documentation regardless of the amount? I'm trying to figure out if I can avoid mailing in 20+ pages of crypto transaction records for such a small gain.

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CosmicCrusader

•10d

Great question about crypto! Unfortunately, cryptocurrency transactions are treated quite differently from stock trades when it comes to IRS reporting. Most crypto exchanges don't report cost basis information to the IRS like traditional brokers do for stocks, so you typically need to provide your own documentation regardless of the profit amount. Since crypto exchanges generally only report gross proceeds (if anything) and not your cost basis, the IRS doesn't have the complete picture of your transactions. This means you'll likely need to include Form 8453 with your transaction records showing the purchase dates, amounts, and basis for your Bitcoin trades. The $45 profit amount doesn't change the requirement - it's about having complete documentation for transactions where the IRS doesn't already have the basis information. I'd recommend double-checking if your exchange provided any forms that specifically mention "basis reported to IRS" but in most cases with crypto, you'll need to provide the supporting documentation yourself.

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