Good morning,

I have a client who has received NQ stock options from her company for many years. She typically sells the same day she exercises the options. Compensation value is usually reported on her W2 box 12 code V, 1099B usually reports cost basis, but it's usually wrong and I have to adjust it.

This year the W2 does not have code V in box 12, but I can see from her final paystub that the compensation value was included in her taxable wages as in previous years.

Does she need to get a corrected W2 before I can file her taxes?

Also, the 1099-B shows this as covered with cost basis provided, but the cost basis is wrong (it doesn't take into account that the compensation value has already been taxed). Do I need to add a statement or note to the return to avoid a mismatch notice?

Thanks in advance!