Would it be fair to say that the way to avoid double-counting the proceeds from exercising a NQSO is to report the employer's W-2 as provided and revise the 1099-B by adjusting the cost basis (line 1e) to reflect the for which the shares were sold (i.e. proceeds), rather than the value of the grant at the time it was made, as the 1099-B currently shows. Is that how to avoid the double-counting? However, that will cause Schedule D of the tax return to differ from the 1099-B the IRS received from the stock broker. Is that OK?
