Fidelity issues with HP-related employee stock    (Mar 28, 2022)   Not officially endorsed or supported. Question? Email us: info@hpalumni.org

In recent decades, when you left the company any shares you owned were automatically moved from an employer-paid account at a plan administrator -- NetBenefits at Fidelity, MyBenefits at Merrill, StockPlan Connect at Morgan Stanley -- to a personal account at their brokerage division. An annual fee is often charged, which can drain a small account. Details of your purchase lots should be preserved. However, if you move the shares to a different brokerage, shares will be moved in a single lot. Some brokers let you correct the records to include lot-by-lot cost basis data.

Cost Basis. Can you correct your broker's records to include lot-by-lot cost basis data? 

Online. "How to Change your cost basis records. You can make these changes online and they are reflected in your account that day."
https://www.fidelity.com/customer-service/how-to-change-your-cost-basis-info

"A few years ago after talking to Fidelity I was asked to scan and email the original purchase-date-and-cost documents. Within a couple of days the cost basis info had been updated for all the different shares. (Including the splits and spinoffs for my original HP shares, which were missing the cost basis info when transferred from Computershare to Fidelity)."
--David

If your ESPP shares (from 2000 onward) are still at Fidelity, there's a good chance that your lot purchase history is available. Try this:
- Log into Fidelity https://www.Fidelity.com
- Click on your "Individual" account.
- Click on the "Positions" tab.
- Click on the security of interest, for example "HPE".
- Slightly down on the page, click "Purchase History/Lots"
- Click on "View lots for this position."

You will see a table listing what Fidelity views as the current basis values, the purchase dates, and quantity for each lot.

--JS

Watch out for Fidelity "Tax Reporting Statement" wording.  Fidelity's version of IRS form 1099-B may have a section with this heading, which has some words underlined:
"Long-term transactions for which basis is not reported to the IRS..."
At first glance, this implies that those transactions do not have to be reported to the IRS. However, that is not the case.
It should read
"Long-term transactions for which basis is not reported to the IRS by Fidelity..."

HPInc/HPE separation. Fidelity used 48.85% instead of HPE's suggested 47.15% cost basis ratio for the HP-to-HPE split. (If you wish, you can adjust that value in cell H59 of the "Data" tab of HPAA's Pre-2001 spreadsheet.) 

Micro Focus. In 2019, some members received computer generated bills from the IRS related to how Fidelity reported the 2017 HP-breakup transactions to the IRS:

- Seattle Spin Co transaction:  Fidelity reported only the Proceeds on this transaction (1099-B column 1d) to the IRS -- but not the Cost Basis (column 1e) -- even though a cost basis amount is shown on the "2017 Tax Reporting Statement" provided by Fidelity. Buried in multiple, complex footnotes, column 1e is listed among eleven columns that were not actually reported to the IRS for that transaction. Footnote (f) says: "Gain/loss information for this transaction is provided based on information available from the company or other sources regarding the aggregate cash and fair market value of share and other property received on the date of the merger. Consult your tax advisor for information on how to report this transaction on your return." "Although Fidelity makes every effort to provide accurate information, please bear in mind that you, the taxpayer, are ultimately responsible for the accuracy of your tax returns."

- MFGP cash in lieu and DXC cash in lieu:  Fidelity reported only the Proceeds on these small transactions (1099-B column 1d) to the IRS -- but not the Cost Basis (column 1e) -- even though a cost basis amount is shown on the "2017 Tax Reporting Statement" provided by Fidelity.

See: Micro Focus - HPE stock history

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