Could you have paid tax twice on your equity compensation and did not know it? If your CPA was calculating your tax liability off of the 1099-B provided by the brokerage firm administering your equity compensation plan, the answer is yes.
When the IRS revised Regulations 1.6045-1, it created the potential for tax traps. Regulations 1.6045-1 requires brokers to list the initial basis (exercise price) on Form 1099-B for income recognized upon the exercise of equity-based options or the vesting…
