The 1099-B sent to the IRS tells the IRS if commissions are included or not included on the 1099-B. I would think the IRS would have to manually find the difference in the gross sales proceeds we report and what is reported on the 1099-B and the IRS would look and see we did the right thing and added in the commissions on the schedule D. I do not think the IRS wants to look at all of our trades unless it looks like we are cheating or made an obvious error. Catoosa
From Schedule D instructions On page D-3 "Like an investor, a trader must report each sale of securities (taking into account com-missions and any other costs of acquiring or disposing of the securities) on Schedule D or D-1 or on an attached statement contain-ing all the same information for each sale in a similar format." On page D-5 "Column (d)âSales Price ... But if Form 1099-B (or substitute statement) in-dicates that gross proceeds minus commis-sions and option premiums were reported to the IRS, enter that net amount in column (d)." I really wish the IRS would make up it's mind if they want commissions included in the sales price or not on Schedule D.