Yes. You must report the sale of stocks used to cover federal withholding. The stock's cost basis is equal to the FMV of the stock at the date of vesting. This will be a considered a short-term sale and chances are the FMV and the price the stocks were sold at may be the same.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
