I am currently working with a customer who has been a participant in his companys Employee Stock Ownership Plan (ESOP).During 2007,because he met the qualifications,he chose to diversify 25% of his account by directly transferring this amount to an IRA.This was accomplished by the company buying back 215 sh. that were in his account,and then rolling the cash over to his IRA.A 1099-R was properly issued by his employer showing this transaction as a non-taxable direct roll-over.The problem is the company also issued a 1099-B showing the sale/redemption of the 215 shares back to the company.My question then is,how would I best reconcile this on his tax return?My thinking is to zero out any Gain/Loss on a Schedule D (basis the same as distribution),but maybe I'm headed in the wrong direction with this.........Thank You for your help!