Retirement tax questions

If you personally sold the 31 shares then your employer would not have included this in your gross wages. You would need to verify this with your employer because if they did include all 53 shares in your gross wages, and they also issued you a 1099-B for the sale of the 31, then yes you are correct in that they made a mistake and you would wind up being double taxed on the same income. If I were you, and I know this is kind of a pain, but worth it, I would calculate what your gross wages should be based on your pay and work weeks and try to see if that total amount was or was not included in your gross wages. In addition, on the 1099-B I don't suppose anything is checked off as far as boxes 6, 8, 10, and/or 12? It does sound to me, as well as though something went awry. But, again, check your numbers against your pay stubs (hopefully it is as easy as accessing these online) and see what that actual gross income figure in total is representing before going any further. No need to pay double taxes on your money, that is for sure!