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Thank you. 

 

"When you sell the stock, your cost basis is $40k ($10k exercise price + $30k taxed income) and your capital gain is $60k. When entering your 1099_B, you should enter $40k as your cost basis."

 

That makes sense. However, how can the IRS verify where the $40K cost basis comes from? The 1099-NEC and the 1099-B seem unrelated and the 1099-NEC just says $30K (the $10K purchase price is not reported anywhere [I can find it in Carta, but it's not furnished to the IRS afaik]).