TAP 206-003

Schedule D and D1 Consolidation

Issue Statement:

Internal Revenue Service's (IRS’) requirement to list each trade in Form 1040, Schedule D , U.S. Individual Income Tax Return, Capital Gains and Losses and D-1 Capital Gains and Losses Continuation Sheet for Schedule D imposes an undue burden on taxpayers, and results in increased cost to the IRS in processing tax returns.

Goal Statement:

Eliminate the need to provide a detailed listing of each trade in Schedules D and D-1, thus reducing the time and cost to both taxpayer and IRS.

Proposal:

The Taxpayer Advocacy Panel (TAP) recommends that the IRS permit taxpayers to provide a summary of their securities trading activity separated by long and short term in Schedule D, thus eliminating the need for a detailed listing of each trade.