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Stock: Member Advice on Tax Return (Feb 6, 2023. Rev Apr 7, 2024.)   Question? Email: info@hpalumni.org

What will be reported? Members have found that plan administrators, transfer agents, and brokerages vary significantly in how (or if) they track gain/loss and cost basis for the many complex HP-related stock events -- and what (if anything) they report to the IRS. Issues with major brokers

"Noncovered" Security -- Definition, Reporting Rules, vs. "Covered" Investopedia on "Noncovered" securities

FWIW, to date no member has indicated -- privately or on the HPAA forums -- that their returns have been questioned by the IRS due to how they reported the many extremely complex HP/HPE-related stock transactions. Save the documents and spreadsheets you used.

Tax software: You can download the 1099-B information from your broker's website. (For example, see TurboTax Import Partner list.)

Using TurboTax for ESPP shares -- step-by-step with screenshots. Now v02 with Capital Gain Worksheet and Form 8949.

When you don't know dates, enter a single lot with "various" as the date. Brokers do that on their 1099-B reports to the IRS -- and tax-prep apps will let you enter "various."

Be sure to save the documents you used -- plus, for future reference, a copy of the HPE/MFGP/"Seattle Spinco" letter This "Dear Shareholder" letter does not appear to have been actually sent to all shareholders. Members report that this cost-basis tracking recommendation was disregarded by some brokerages, plan administrators, and transfer agents -- and not uniformly followed by others.

And be sure to save -- under a different filename -- the spreadsheets you have modified and keep them for future reference when you sell shares, etc.

Amended return. You can file Form 1040X "...within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later." IRS link  [When you launch a tax-prep app, it asks if you want to file an amended return.]

You're done! 


References

If you elect to hire professional help, the IRS explains the different types of tax professional. You can search the online IRS Federal Tax Return Preparer Directory by geography and qualifications -- or by name to verify credentials:  Directory of Federal Tax Return Preparers.

HP Share Ownership Program Tax Reporting provides helpful information collected by HPAA member Alan Silverstein and posted on his personal website:  (Revised December 11, 2013.)

Articles on employee stock purchase tax issues recommended by members:  Sale of ESPP shares    TurboTax article on ESPP

Official IRS website, which is well done and has a very good search box: https://www.irs.gov

Official TurboTax help site: https://ttlc.intuit.com -- which you can search even if you don't use TurboTax or don't want to register your copy..

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