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11409: 8949 - EF Message 5310


Rejects + EF Messages

Why am I receiving EF Message 5310 on this return?

EF Message 5310 states:

INVALID ENTRY: There is an invalid entry for "Date sold or disposed" field on screen 8949.
Valid entries include BANKRUPT, WORTHLSS, and a valid calendar date.
Open screen 8949, available from the "Adjustments" tab of the Data Entry Menu, and review your entries.

There is an invalid entry for Date sold or disposed on the 8949 screen. This can be caused if VARIOUS is entered as the Date sold or disposed (line 1c) on the 8949 screen.

Valid entries include BANKRUPT, WORTHLSS, and a valid calendar date.  Review data entered and make any necessary changes. 

Generally, a valid date or the designation bankrupt or worthless is required by the IRS. There are, however, two exceptions to this requirement detailed below.

Exception 1

Per the Form 8949 Instructions:

"You may be able to aggregate those transactions and report them directly on either line 1a (for short-term transactions) or line 8a (for long-term transactions) of Schedule D."

In Drake Tax: 

  • Use the D2 screen to summarize the transactions as either long or short term. Enter the totals for proceeds and cost or other basis for short term in line 1a or long term in 8a.

Per IRS guidelines, no attachment is required: "If you choose to report these transactions directly on Schedule D, you don't need to include them on Form 8949 and don't need to attach a statement."

Exception 2 

Per the Form 8949 Instructions:

"Instead of reporting each of your transactions on a separate row of Part I or II, you can report them on an attached statement containing all the same information as Parts I and II and in a similar format... Enter the combined totals from all your attached statements on Parts I and II with the appropriate box checked..."

In Drake Tax: 

  • Enter the following details on the 8949 screen:
    • Enter a description ending in "See attached statement."
    • Do not enter a date acquired or date sold or disposed of in line 1b or 1c.
    • Choose the type of gain or loss as either long or short term (optional - defaults to short term if not entered).
    • Complete lines 1d-1g, as applicable. 
    • Select M in the drop list for Adjustment #1 under the column Form 8949 adjustment code
  • The IRS requires an attachment for this entry to be filed with the return (PDF attachment) or submitted by paper with Form 8453 after e-filing the return.
    • To attach a PDF to the e-filed return, first compile and scan all the supporting documents and create a PDF file.
      • Suggested file names can be found at the bottom of screen 8949.
      • Drake Documents can also be used for this process.
      • See Related Links below for details on creating and attaching a PDF. 
    • Form 8453 can be filed to submit documentation for an e-filed return by paper.
      • To do this, mark the Form 8949 box under the Form 8453 Paper Document Indicators section of the EF screen.
      • Review the supporting statements and the 8453 in View and make any needed corrections.
      • e-File the return.
      • Print the 8453, attach the Forms 8949 to it and mail to the IRS within 3 business days after receiving acknowledgement that the IRS has accepted the electronically filed tax return.
      • The 8453 does not need to be signed.
      • See Related Links for details. 

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