How can I/do I need to file form 8997?

I was worried about not being able to file Form 8997 which is clearly called for by the IRS.  Until I found the following IRS link and read bullet point #4 that I've highlighted in bold underlined italics below.

So I have my Form 8997 made out and ready to submit when and if the IRS requests it.  Until then - Thanks for NOTHING Turbo Tax. 

https://www.irs.gov/newsroom/what-taxpayers-should-[product key removed]ing-a-tax-return

IRS Tax Tip 2018-118, August 1, 2018

Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes things like changing the filing status, and correcting income, credits or deductions.

Here are some tips for taxpayers who need to amend a tax return.

• Complete and mail the paper Form 1040-X, Amended U.S. Individual Income Tax Return. Taxpayers must file an amended return on paper whether they filed the original return on paper or electronically. Filers should mail the Form 1040-X to the address listed in the form’s instructions PDF. However, taxpayers filing Form 1040-X in response to a notice received from the IRS, should mail it to the address shown on the notice.
• If taxpayers used other IRS forms or schedules to make changes, they should attach those schedules to their Form 1040-X.
• Taxpayers should not amend a tax return to correct math errors; the IRS will make the math corrections for the taxpayers.
• Taxpayers should also not amend if they forgot to include a required form or schedule. The IRS will mail a request about the missing item.
• Anyone amending tax returns for more than one year will need a separate 1040X for each tax year. They should mail each tax year’s Form 1040-X in separate envelopes.
• Taxpayers should wait for the refund from their original tax return before filing an amended return. They can cash the refund check from the original return before receiving any additional refund.
• Taxpayers filing an amended return because they owe more tax should file Form 1040-X and pay the tax as soon as possible. This will limit interest and penalty charges.
• Generally, to claim a refund, taxpayers must file a Form 1040-X within three years from the date they timely filed their original tax return or within two years from the date the person pays the tax – usually April 15 – whichever is later.
• Taxpayers can track the status of an amended return three weeks after mailing using “Where’s My Amended Return?” Processing can take up to 16 weeks.

I have the same tale of woe as the rest of you.  I had to leave TurboTax due to their refusal to support the form 8997.  I went to TaxActOnline in 2020.  At the time it was the only one I could find that would support the Form 8997.  They do a good job, but their software is written very high level.  You have to know what you are doing.  I have an accounting degree and even I had to resort to searches and finally calling Customer Support to figure out how to get to the Form 8997.  On your initial investment, you fill out your Capital Gains, and then you have to "code" a gain as Z to get it to go to Form 8997  But getting the code Z to appear on the drop down menu was a royal pain. Then, in subsequent years, getting the opening and closing balance to appear is a bit of a pain. 

I did some googling and I found that now TaxSlayer Pro is supporting the Form 8997.  I don't know about their service.

Someone on here suggested using TuboTax without the Form 8997 and then filing an amendment to include the Form 8997. 

OH HE** NO!  Do not file a Form 1040X unless you are owed an additional refund (which will take 20 weeks according to their web site).  You run the risk that the IRS will mess up and decide you owe additional money. Here is what happened to me, although my Form 1040X did not involve a Form 8997.

(What the IRS won't admit to, is.... if they think they can squeeze more money out of you, they FAST TRACK those Form 1040X's.  )

I received a corrected tax document from an investment company.  I had additional income.  So I filed (electronically, TaxActOnline lets you file free if you used their service on your original Form 1040) a Form 1040X. I dutifully paid the tax.

ONE MONTH later, I got a reply from the IRS acknowledging my Form 1040X and acknowledging my payment, but they decided I owed an additional $1500 plus penalties and interest.  HUH? (yeppers, they fast track if they can squeeze you for additional money!)

I sent in a protest letter which included a copy of my previously filed Form 1040X.  Guess what, the IRS completely ignored my protest letter and processed my COPY (of my previously filed Form 1040X) as a SECOND Form 1040X.  (I discovered this after numerous, numerous phone calls to IRS TaxPayer Advocate Office.) Then they sent me another letter claiming I still owed $1500 plus penalties and interest.

Finally I found an astute TaxPayer Advocate who told me that the problem was.....  my original tax was computed using QDCGTW (Qualfied Dividends Capital Gains Tax Worksheet), which I was entitled to and if you have capital gains and dividends, you get that rate, too.  When I sent in my Form 1040X, the IRS recomputed my tax using the Tax Table and not the QDCGTW. 

So I sent in another protest letter requesting the IRS to recompute using QDCGTW.  I should not have had to do that, it should have been obvious.  But TaxPayer Advocate said I pretty much had to. 

Finally got the IRS to back off.  It took three months, but I also made numerous phone calls and was a "squeaky wheel." 

DO NOT file a Form 1040X unless you are owed extra money back.