I've copied and pasted the "missing link" answer:
You really need to "break" the sale into "ESPP" stock and "Dividend
Reinvestment" stock and enter the two pieces as separate sales. So if
you sold 100 shares, 98 of which you purchased through the ESPP, and 2
of which came to you through dividends that were reinvested, you'd enter
the two sales separately. The first you'd enter using the ESPP step by
step process and the second you'd enter using the default
spreadsheet-like "fill in the boxes" 1099-B entry form.
Tom Young
EDIT: Understand that you don't really need to use the ESPP step by step process to report the sale IF THE COMPENSATION is reported on your W-2 and you KNOW YOUR BASIS. You can simply report the sale as plain-vanilla stock, correcting the incorrect basis reported by the broker. In that case there's no need to distinguish between stock received via the ESPP and stock received via dividends.
