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I received a 1099B for RSU tax sale, but didn't sell the RSUs. How should I report this?

Etrade reported the tax sale of my RSUs on a 1099b.  I didn't sell any of the vested shares.  TT is requiring I enter sale information to report RSU sales.  Since I didn't actually sell any, how can I report this?

Ex.  Etrade reports:
box 1a - 1/3/11
box 9 - company cusip 70 shares price 5
box 2 - 350
box 6 - noncovered
All other boxes blank (1b, 3,4,5,15) or not shown

This was the tax sale.  I don't think I should get a 1099b for the tax sale, but I did.  What should I do?  I didn't sell any of the shares from this lot that vested.
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    Think of the RSU grant as a cash bonus. You were granted shares (at $20/share for example) but they sold 70(?) to cover withholding, etc. taxes. The income and the $350 of taxes are included on your W-2...you already paid taxes on the income. So the remaining shares were bought with after-tax dollars. Don't report any shares sold. TT will make you crazy if you try to go down that path AND it's just not necessary. Keep it simple.
    • Thanks for the help!  Wont the irs require that I report the 1099b i received? TT just doesn't handle this well.
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    1099Bs report stock acquisitions and sales to you and IRS. IRS really only cares about the sales made during the tax year since these generate cash and, with luck, capital gains (e.g. income). But the acquisition data is not really useful until you sell the shares. Store the acquisition data but there is no need to report it yet. There is no taxable event associated with the purchase of shares. So treat the RSU income and taxes like the cash transaction they are and use the acquisition data (55 shares received, after taxes, at $20/share) when you get around to selling those shares.
    • Thanks - but just so you are clear, the 1099 I received was the for the sale of stock to pay the taxes (not for the acquisition).  Are you suggesting I don't have to report that?
    • you need to report this, else you will get audited. Just use stock sale as a way to report it.
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