Taxing Situations

Believe the client has an ESOP. Again, the company upped his W-2 for the cashless sale gain. Fidelity is reporting the transaction, but indicating that they are not reporting basis, although the basis indicated on their forms is what was computed from the company's form 3922. Still, T/P has gain in his W-2, and gain on his Sch D unless I can up basis.

A nonqualified disposition is included in box 1 of the W-2 as taxable wages. It is not subject to SS or medicare taxes. This is likely a standard, corrected W-2.

I have a similar issue. Only this is a disqualified option. Company included GAIN in T/P's W-2. Okay, I follow that. Fidelity issues a 1099B that shows basis as determined by client's 3922 form. So now gain is on line 7 of the 1040 and on Sch D. Fidelity is reporting this as "basis not reported to IRS." Trying to find some documentation to substantiate upping basis to include gain included in the W-2. Any ideas?