Since 2014 brokers don't include "compensation element" in cost basis on the 1099-B form for RSUs, ESPP and NQSO stock. This means that I have to adjust cost basis myself to avoid being double taxed.
However, in my 8949 my tax consultant simply updated column "(e) cost or other basis" without specifying anything in columns "(f) code from instructions" and "(g) amount of adjustment". My coworkers told me that correct way to do this is by using (f) and (g) columns.
- So what is the correct way to update cost basis in 8949?
- If my tax consultant updated directly column (g) then could IRS ask me to fix it or could that even be a trigger to audit me, because there would be a mismatch between my 8949 column (e) and what my broker reported to IRS?