How to Choose Between 1099-B Match vs. Audit My Broker Tax Reports

At TraderFyles, we understand that tax season can be overwhelming for active traders. That’s why we’ve developed two powerful tools to assist with your tax reporting needs: 1099-B Match and Audit My Broker. These tools are designed to streamline the reporting process, ensuring accuracy and compliance with IRS regulations. In this article, we'll provide an overview of both tools to help you choose the right solution for your needs.

1099-B Match

The 1099-B Match tool is designed to help traders reconcile their 1099-B PDF forms with their actual trades. It simplifies the process of reporting capital gains and losses and quickly generates a report to visualize your 1099-B's in a consolidated format, ensuring that your tax filings are accurate and compliant. Here’s what the 1099-B Match tool offers:

• Reconciliation of 1099-B Forms: Automatically generates a consolidated summary view of your 1099-B PDF's, highlighting any discrepancies for review. This summary view also provides information necessary for claiming Trader Tax Status, such as the number of days traded in a calendar year.
• Comprehensive Tax Forms: Provides the ability to generate Form 8949 & Schedule D for cash accounting methods and Form 4797 for those using marked-to-market accounting, ensuring you have all necessary documents for filing.
• Transactions Report: Provides a detailed CSV report of all transactions, facilitating easy review and record-keeping.
• TurboTax Integration: Allows for direct uploading of your tax report to TurboTax (desktop version), simplifying the filing process. Please note that the online version of TurboTax is not supported.

Audit My Broker

Audit My Broker is a tool aimed at traders who require wash sale reconciliation and review and/or wish to verify the accuracy of their broker's reporting. This tool is particularly useful for identifying any potential issues that could affect your tax filings, such as wash sales. Here's what you can expect from the Audit My Broker tool:

• Broker Report Analysis: Our algorithm reviews and audits your broker's reporting, identifying discrepancies and potential wash sale red flags that could impact your tax reporting. This allows for independent calculation of capital gains and losses.
• Specialized Reports: Provides the ability to generate essential tax forms, including Form 8949 & Schedule D for cash accounting and Form 4797 for marked-to-market accounting methods. Also provides specialized reports like the Permanent Disallowed Wash Sale Report and the Wash Sale Deferral Report, which are crucial for understanding the tax implications of wash sales.
• TurboTax Integration: Offers the convenience of uploading your corrected and verified tax report directly to TurboTax (desktop version), streamlining the filing process.

How to Choose the Right Tool

• For Quick Reconciliation Needs: If your primary concern is reconciling your 1099-B PDF forms and quickly generating the necessary tax forms to file your taxes, 1099-B Match is the tool for you. It’s designed to cut out the fluff of detailed tax reporting with a consolidated summary view and give you the essential data needed to finish your trader taxes fast and simple.

• For Wash Sales, Broker Audit and Compliance: If you're looking to audit your broker's reporting or need detailed analysis of wash sales and their impact on your taxes, Audit My Broker is the ideal choice. This tool goes beyond basic reconciliation, providing in-depth reports and analysis to ensure your tax reporting is accurate and compliant.

For more information or to get started with these tools, contact our support team. We’re here to help make your tax reporting as straightforward and stress-free as possible.