How to find, protect, and document your employee stock. (Updated April 9, 2018.) Questions or comments to: firstname.lastname@example.org
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Mutual help for alumni and employee shareholders. Other stockholders should contact the companies directly.
Operated by former employees who volunteer their time. Not endorsed or supported by the company.
New: If you had HPE stock at Merrill Lynch last year, a corrected 1099-B is scheduled be available on Tues April 17. Details: Merrill Lynch Details
New: If you had HPE stock at Morgan Stanley last year, a corrected 1099-B dated 4/13 is being sent via postal mail. Details: Morgan Stanley Details
Extension of time to file. "April 17 is the deadline for most taxpayers to file an extension and to pay taxes owed to avoid penalty and interest charges. If you file for an extension, your return is due October 15, 2018. ...an extension of time to file your return does not grant you any extension of time to pay your taxes." IRS link (You can file for an extension with a paper form or using TurboTax.)
If you have stock acquired as part of your employment, you need to find it, protect it, document it -- and not pay double tax on it. A team of HP Alumni volunteers has developed a set of information, links, and spreadsheets to help you do this.
New: If you do not have employee purchase records -- or did not input your lot-and-cost information into your broker's system -- for a particular time period before 3/1/2002, you can use the current version of the HPAA spreadsheet to help estimate the average cost basis for the various spinoff shares over that period. Fastest if you start on this page and work through the steps. (Note that current spreadsheet is dated April 7 -- version 14 since 2004.)
- Given the spinoffs over the years (Agilent, Keysight, HPE, HPI, DXC, Micro Focus -- and soon Perspecta) -- and the number of administrators, brokers, and transfer agents -- it is unlikely that your employee stock is all in one place.
- Members report that an administrator or broker may turn stock over to a state government as abandoned property -- which can be very difficult to retrieve. (Checking your account online every month does not prevent this.)
- At the time you acquired each lot of stock -- whether through employee purchase, option, stock award, or on the open market -- a "cost basis" for that lot was determined and tax was paid. The portion you paid came from your salary -- which was taxed at the time -- and you paid income tax on the company's contribution.
- The cost basis for your original shares must be allocated across any spinoff shares that you have received.
- Due to stock splits and spinoffs, it is unlikely that the cost basis for your stock is correct in current administrator or broker records. The cost basis may be "unknown" -- i.e. $0 -- implying that you received your spinoff shares for free. Or lots purchased at different times and costs may have been lumped into a single lot. Or cost basis information may have been lost as shares were moved between administrators, brokers, and transfer agents.
- Micro Focus on 2017 taxes. Hewlett Packard Enterprise (HPE) shareholders received shares in a UK company, Micro Focus International, in the September 2017 spinoff of HPE's software business. Unlike previous spinoffs, due to the unique circumstances involving a non-US corporation, HPE indicates that this transaction is taxable for US shareholders -- even if Micro Focus stock has not been sold.
- At some point, you may want to sell some stock -- which could include shares in HP, HPE, Agilent, Keysight, DXC, Perspecta, and Micro Focus. The broker will use the cost basis in their records (which may be $0) to report your apparent profit to the IRS. You could pay taxes twice on the same income!
- It is unlikely that all of your stock is in one place -- you or your heirs could lose some of the stock or dividends as "abandoned."
We've found that going through the steps in order is much faster and easier than jumping ahead <smile>
First step: 1. Stock Decoder You probably have stock in HP Inc, HPE, DXC, Micro Focus, Agilent, and Keysight. (And soon, Perspecta.)
Other stock-related topics:
- Join the HPAA US Finance Forum
- Stock records: Companies pay various firms to perform shareholder recordkeeping. How to obtain stock records.
- Lost stock: This is surprisingly common, even for people who haven't changed their address in decades. How to find lost stock and dividends
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For more mutual help on this topic and many others, join the independent HP Alumni Association. If you were formerly a regular, direct employee of Hewlett-Packard, HP Inc, or Hewlett Packard Enterprise -- or have a defined retirement or termination date, join the HPAA. No charge, thanks to HPAA members.
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