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Mismatched cost basis on 1099-B form for ESPP shares

I have a question about my 1099-B form regarding ESPP sales. My company allows me to buy shares at a 15% discount through an ESPP program. I buy-and-hold for 1 year 1 day so my sales are taxed at long-term rates. My question is about my 1099-B cost basis.

  • Looking at my 1099-B form, the "Net Proceeds" is checked at the top for Reported to IRS.
  • Box 1d (Proceeds) has $3,555
  • Box 1e (Cost or other basis) has $3,048
  • Box 2 says Long Term

This implies a total of $507 capital gains.

However, the next page of the form has line-item details provided for information only. There, it says:

  • Proceeds: $3,555
  • Cost or other basis: $3,582
  • Long Term
  • Total loss: (27).
  • Ordinary Income (USD): $534
    • ^^^^ where did this number come from, and what does it represent?

My question is which cost basis is the IRS aware of -- the one before the 15% discount (which seems to be the one shown in the line-item detail, or the one after the 15% discount which seems to be at the actual 1099-B form).