"The 1099B under Short-term noncovered securities reports the net shares
with Gross valued at FMV time of sale and cost basis at FMV time of
release. By entering the data as is, am I correctly reflecting that
shares were with-held but we owe money on short-term capital gains?"
I'm surprised that the 1099-B reports any basis at all but based on what you've said here then the answer to your question is "Yes".
"Also, 1099B in short term Covered securities shows what appear to be
reinvested dividend shares. The cost basis is the same as reported on a
1099DIV as ordinary dividends. It seems like double taxation."
No. Since the trade is being reported as "covered" your basis in each lot should be the same at the amount of dividend that was reinvested. In other words the basis is subtracted from the proceeds to come to a gain or loss figure. Only if the basis was listed as $0 would it be "double taxation" as you'd report the dividend as income when you enter the 1099-DIV and then you'd report an over-statement of "gain" when you entered the 1099-B.
Tom Young
