There's no need to report the shares that you exercised and did not sell. All the necessary reporting has been done by entering the W-2, (compensation created by exercise, taxes withheld because of compensation), and your entry of the sale of the stock "for taxes", (typically creating a small loss).
When you buy a stock through your broker you don't report that purchase in your income tax return until you sell the stock. The stock you bought through your employer, (exercise price paid plus your time and effort recorded as compensation), is no different then that broker-purchased stock.
Tom Young
