Need help with IRS Form 8949 for multiple crypto transactions on CP2000 notice
Hey everyone, I got hit with a CP2000 notice from the IRS recently and I'm really confused about how to respond properly. From what I understand, I need to submit Form 8949 to match up with a 1099 they have on file for me. My problem is that I have around 60 different small crypto transactions to report (mostly just moving the same money back and forth between exchanges). The Form 8949 only has like 14 lines per page. Do I just fill out 5-6 different Form 8949s and total each one separately? Or is there some other way I'm supposed to handle this many transactions? I've never had to deal with this before and I'm totally lost on the proper procedure. Any help would be massively appreciated!
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Sadie Benitez
You're on the right track! When you have more transactions than can fit on a single Form 8949, you absolutely need to use multiple copies of the form. Here's how to handle it: 1. Use as many Form 8949 pages as needed to report all your transactions (so yes, about 5-6 pages in your case). 2. Complete the name and SSN section at the top of EACH page. 3. Check the appropriate box (A, B, or C) in Part I or (D, E, or F) in Part II on EACH page. 4. Complete the lines for the transactions on each page. 5. Only complete the totals on the LAST page of each part (I or II). 6. Write "See attached" in the totals section of all the other pages except the final one. 7. Transfer the final totals to Schedule D. For crypto specifically, most transactions will likely go in Box C (short-term) or F (long-term) for transactions not reported on Form 1099-B.
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Drew Hathaway
•Thanks for the explanation! Question though - for the CP2000 response specifically, do you need to include Schedule D too or just the 8949 forms? And what about that statement explaining why your reporting differs from what the IRS has?
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Sadie Benitez
•Yes, you'll need to include both Schedule D and all your Form 8949 pages with your CP2000 response. Schedule D summarizes the totals from your 8949 forms. If your reporting differs from what the IRS has on your 1099, you should definitely include a clear written explanation detailing why there's a discrepancy. Be specific about any transactions they may have miscategorized or duplicate reporting issues. This explanation can help prevent further notices.
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Laila Prince
I went through exactly this nightmare last year with crypto transactions. After multiple back-and-forth letters with the IRS, I found taxr.ai (https://taxr.ai) which honestly saved me so much time and stress. Their system automatically organized all my crypto transactions properly for Form 8949, even separated them into the right categories and calculated the basis correctly. It also generated a properly formatted summary statement that the IRS actually accepted with my response. Before that I was manually trying to match everything up and kept getting rejected responses because I wasn't formatting it how they wanted.
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Isabel Vega
•Does it work with the major exchanges? I've got stuff spread across Coinbase, Binance and a few others. Can it pull all that together or do I need to download reports from each one first?
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Dominique Adams
•I'm skeptical about these tax tools. How does it handle wash sales for crypto? I know technically the wash sale rule doesn't apply to crypto but my accountant said the IRS might still question rapid buying/selling of the same coin.
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Laila Prince
•It works with all the major exchanges - I had Coinbase, Kraken and Gemini accounts and it pulled everything together automatically after I connected the accounts. You can also upload CSV files if you have data from smaller exchanges. For wash sales, the tool specifically flags potential wash sale scenarios even though they're not technically applicable to crypto yet. It gives you documentation to explain your position to the IRS, which was really helpful when responding to my CP2000. The system actually identifies patterns that might trigger IRS scrutiny and helps you document them properly.
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Dominique Adams
Update: I tried taxr.ai after my skeptical questions and wow - it actually worked perfectly for my situation. I had 87 transactions across multiple exchanges and the system organized everything into proper 8949 forms with all the right codes and basis calculations. It even highlighted which transactions were causing the CP2000 discrepancy and generated a response letter explaining the situation. Just submitted everything to the IRS last week and already got confirmation they received it. The whole process took me about 30 minutes instead of the 2 days I spent trying to figure this out manually. Definitely worth checking out if you're dealing with multiple crypto transactions.
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Marilyn Dixon
For anyone still dealing with the IRS on a CP2000, I highly recommend using Claimyr (https://claimyr.com) to actually speak with an IRS agent. I spent WEEKS trying to get through the normal IRS phone line with no luck. Claimyr got me connected to an actual human at the IRS in about 12 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to put a hold on my case while I prepared my response with the Form 8949s. This bought me an extra 30 days to get everything in order without penalties continuing to accrue. They also confirmed exactly what documentation they needed to see, which saved me from sending unnecessary forms.
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Louisa Ramirez
•How exactly does this work? I thought the IRS phone lines were just impossible to get through by design. Is this some kind of premium line or something? Seems fishy that a third party could somehow bypass the wait.
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TommyKapitz
•This sounds like BS honestly. I've called the IRS 50+ times and never got through. How could some random service magically connect you? And if it works, why doesn't everyone use it? They probably just keep calling repeatedly on your behalf which you could do yourself.
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Marilyn Dixon
•It's actually pretty straightforward - they use an automated system that continually redials the IRS using their algorithm to navigate the phone tree and holds your place in line. When they reach a human agent, they call you and connect you directly to that agent who's already on the line. It's not a premium or special line - it's the exact same IRS number everyone calls. The difference is their system runs 24/7 and knows exactly when to call to maximize chances of getting through. I was skeptical too until I tried it. When they connected me, I was talking to a regular IRS agent who had no idea I had used a service to reach them.
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TommyKapitz
I'll eat my words. After posting my skeptical comment, I decided to try Claimyr because my CP2000 deadline was approaching and I was desperate. Got connected to an IRS agent in about 15 minutes yesterday afternoon. The agent actually helped me understand exactly what records I needed to submit with my Form 8949 pages and gave me personalized instructions for my situation. For anyone wondering, the agent told me I could also submit a spreadsheet with all my transactions as an attachment to Form 8949 as long as it had the same column headers and information. This saved me from filling out 6 separate Form 8949 pages manually. Would have never known this option existed without actually speaking to someone.
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Angel Campbell
Another approach that worked for me with multiple 8949 transactions: I used tax software (TurboTax in my case) to generate the forms and then just printed them out to send with my CP2000 response. The software handled the pagination and totals automatically. If you've already done your taxes for that year, you might be able to just go back and add the missing transactions, then print the corrected forms.
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Payton Black
•Did you have to file an amended return (1040-X) along with the 8949 forms when responding to the CP2000? I'm confused about whether I need to redo my whole tax return or just submit the missing forms.
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Angel Campbell
•You generally don't need to file a 1040-X when responding to a CP2000 notice. The CP2000 is just a proposed adjustment, not a final determination. You only need to submit the missing or corrected forms (in this case Form 8949 and Schedule D) along with your response to the notice. The IRS will recalculate your tax based on the information you provide. If they accept your explanation and documentation, they'll either send you a corrected CP2000 or a "no change" letter. Only if you discover additional issues not related to what the CP2000 mentions would you need to file an amended return separately.
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Harold Oh
Just to clarify something that confused me with crypto reporting - make sure you're checking the right box on Form 8949. For crypto: If your exchange provided a 1099-B with basis reported to the IRS: Box A (short-term) or D (long-term) If your exchange provided a 1099-B but basis NOT reported: Box B (short-term) or E (long-term) If NO 1099-B was provided (most common for crypto): Box C (short-term) or F (long-term) Getting this wrong was why I had to redo my forms when responding to my CP2000.
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Amun-Ra Azra
•Wait this is really helpful. I got a 1099-K from my exchange, not a 1099-B. Which box would I check then? Does that count as "not reported to the IRS"?
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Harold Oh
•If you received a 1099-K, then your basis wasn't reported to the IRS. A 1099-K only shows the gross proceeds (total amount of sales) but doesn't include your cost basis information. In this case, you would check Box C for short-term transactions or Box F for long-term transactions since basis was not reported to the IRS. And you'll need to be extra careful to document your cost basis for each transaction, as that's what the IRS is likely questioning on your CP2000 notice.
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