Income from the sale of the stock would be reported on his W-2 form in box 1 (wages) and there may also be some additional tax associated with the form 1099-B that you would receive reporting the sale of the stock. Often the basis reported on the form 1099-B is understated by the income reported on the W-2 form, so you need to adjust the basis by adding the income reported on the W-2 form.
Can you clarify that this is the "additional tax" you are referring to, or are you referring to a tax penalty, as that would not be associated with the sale of stock options.
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