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Will the IRS computers understand that this is a wash sale and disregard the extra sales amount ... or might I have some ‘splaining to do?

They probably won't care that it's a wash sale. And don't worry about reporting MORE gross proceeds than is shown on your 1099. The IRS computers only look for someone reporting LESS than what is on the 1099.

When you do a final sale in the same year as a wash sale, do you even have to enter the wash sale ... since the taxes come out the same either way?

We often point that out here. Doing all the work of properly reporting a wash sale only matters when you dispose of the stock again in a later tax year OR when the second sale moves the loss from short term to long term.

--Peter
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