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Stock option reporting w2 and 1099b

PATAX
Level 9
Retired employee sold stock options of previous employer. Employer correctly issued w2 showing 28k gross, less all fed, state, and local tax withheld of 8k. Client received balance of ~ 20k. Stock brokerage firm that handles stock options for employer issued 1099b, short term sale, showing ~ 40k "gross sale" less "basis" reported of 12k, resulting in 28k gain - all data reported. In my opinion, it should not be reported twice. If I increase stock basis to 40k it will not match 12k reported to IRS, and a letter may follow from the IRS. Since it is difficult to correspond via mail now, I think it would be better if brokerage firm corrects the 1099b. What do you guys think? Thank you very much in advance.
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Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15
You can adjust the basis, you almost always have to in this type of situation. The brokerages rarely have it correct.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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2 Replies 2
Just-Lisa-Now-
Level 15
Level 15
You can adjust the basis, you almost always have to in this type of situation. The brokerages rarely have it correct.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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PATAX
Level 9
Thank you very much Lisa....I appreciate it.
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