@MarilynG1  "Your employer will send you Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), if you purchased stock during the tax year." Form 3922 pertains only to stock acquired via an ESPP.  It's not going to be issued for an RSU. ... View more

@tgomax    I "retired" as a SuperUser when TurboTax switched to the "CHAMPIONS!" program, (queue up Queen's "We Are the Champions"), but still get notifications when things happen over here, and sometimes I respond.   First, since you are on the accrual basis indicating on your income tax return $100K of revenue and $900K of deferred revenue is absolutely the correct accounting.  You have no real exposure to the taxing authorities if you are correctly reporting your taxable income.   Second, even if the IRS would contact you you certainly would not be undergoing an "audit" in the correct sense of the word.  A more correct word to use here would be "inquiry."  Your situation of getting a dollar figure on a 1099 that well exceeds the correct amount of income to report in this situation has got to be fairly common and one would hope that a well-written explanation of the transaction, perhaps with appropriate supporting documentation, would put the issue to bed.  (I use the word "hope" because the taxing authorities sometimes are extremely - maybe purposely? - obtuse so sometimes you have to do some back-and-forth with them.)   You'll need to make the judgement here whether the cost to you of responding to the inquiry times the probability of them actually making the inquiry is more or less than the $2.5K cost of reporting the entire $1M as revenue. ... View more

@torchill  You may very well be right about the "2020" aspect.  For some reason I was thinking that you were really referring to the 2019 tax year, and that's the way I was responding.  I haven't even looked at the "tax year 2020" TurboTax program at this point.  I expect this might be an "early-season" bug. Sorry for the confusion. ... View more

@torchill    I ceased being a SuperUser when when Intuit switched from SUs to the "Champion" program, so I'm not going to take a deep dive here, but I'll mention a few "top of mind" thoughts. The TurboTax 2020 program is completely capable of properly reporting the sales of stock acquired via an ESPP if you enter the sale correctly, a process TurboTax made more tricky a few years back.   This isn't a "TurboTax 2020" issue. The page that comes up asking about what's been reported on your W-2 comes up as the very last page of the "Stocks, Mutual Funds, Bonds, Other" interview, it doesn't come up when you enter your last security sale.  You have to keep going with the interview,  hitting "Continue" or whatever until you come to that page. Some years back TurboTax changed how that page works.  The way it used to work was that TT said "here's the ordinary income we've calculated from your ESPP sales, how much of this is already reported on your W-2?"  TurboTax had a box on that page where you could enter that number, (most commonly that number reported on the W-2 would be associated with short term sales only), and if you had compensation associated with long term sales, TurboTax would include the difference on your income tax return as compensation income.  That box in no longer on that page.  Now, when TurboTax tells you how much compensation it's calculated you can only answer "Yes this is on my W-2" or "No this isn't on my W-2."  So if your ESPP sales are both long term and short term and both classes of sales created compensation, neither answer is correct. This last issue can be circumvented in about 3 different ways and I posted those workarounds many times since TurboTax changed things.  I think if you look around in the forum you should be able to find one of those posts and figure this out.   (torchill: I had some problem following your post so maybe posting the details of one problem sale - complete with screenshots - might help somebody grasp the issue in a more tangible way. )   ... View more