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Every year I get the useless 1099-B with the IRS-mandated made-up cost basis numbers, and then later I get the Stock Plan Transactions Supplement that actually matches my paystubs and W2 income. By what date does E*trade generate the Stock Plan Transactions Supplement? (Last year I had it by mid-February but apparently this year is different?)

(Also why does the IRS even require the useless version to be generated? Are they intentionally trying to trick people into paying taxes twice on the same income? If they succeed, will they pay interest and penalties to the victims?)

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  • This sounds like a Etrade problem. What plan is that - ESPP? RSU? ISO?
    – littleadv
    Feb 15, 2023 at 6:55
  • @littleadv There is one form that includes all the stock plans (in my case, ESPP and RSU). I doubt this problem is E*trade specific, as their explanation "The Form 1099-B Cost Basis amount does not include [stock plan cost basis] that your employer reported to the IRS as ordinary income." sounds like a problem with how the IRS defines Cost Basis on the 1099-B versus what is actually taxed. Feb 15, 2023 at 7:08
  • I have a RSU account with Morgan Stanley (ETrade is their subsidiary) and I have no such issues. It seems like an issue with ETrade, it's definitely not the IRS requirement.
    – littleadv
    Feb 15, 2023 at 7:10
  • its not an issue with etrade, its an issue with the particular terms of the stock plan your employer offers. With that said, I too am still waiting for my supplement. I believe it comes down to whether or not your plan withholds taxes before the stocks are issued.
    – avigil
    Feb 15, 2023 at 15:10
  • @avigil not sure I understand what you're saying. Sounds like you have an answer - care to elaborate?
    – littleadv
    Feb 15, 2023 at 17:39

1 Answer 1

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The Stock Plan Transactions Supplement is actually already available. However, it is a bit tricky to find it, as it's not with the other tax documents. The navigation sequence is as follows:

  1. Click the Stock Plan button in the purple bar at the top.
  2. In the My Account dropdown menu in the gray bar under the purple bar, click Gains & Losses.
  3. In the Download dropdown menu, select Download Supplemental Information (PDF).

And I think I was looking in the same place yesterday and this wasn't there. So that answers the question about the date (it's February 15).

(I'd still like to know why the documents are split like this).

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