Wealth manager tax coordination
Equity Compensation Tax Review
Review equity compensation tax reporting before exercises, sales, vesting events, and withholding gaps create filing-season surprises.
Equity compensation can affect ordinary income, capital gains, AMT, withholding, and estimated taxes. A CPA can review tax reporting and projections, but does not recommend whether to hold, sell, exercise, or diversify company stock.
Best fit
Executives, employees, founders, and advisors coordinating tax projections for RSUs, ISOs, NSOs, ESPPs, concentrated stock, or year-end exercises and sales.
What we help clarify
Advisor and client questions this page addresses
- Will vesting, exercise, or sale activity create ordinary income, capital gain, AMT, or estimated-tax exposure?
- Do Forms W-2, 1099-B, 3921, or 3922 fully explain the tax reporting?
- Could cost basis reported by the broker require adjustment on Form 8949?
- Should withholding or estimated payments be reviewed before year-end?
Equity tax projection
Estimate tax effects from vesting, exercise, sale, withholding, and AMT assumptions.
Stock plan records checklist
Identify Forms W-2, 1099-B, 3921, 3922, and supplemental basis documents needed for filing.
Filing review
Review Form 8949, Schedule D, AMT, and withholding issues that may affect the tax return.
Tax records
Information that usually matters before a filing position is reviewed
- Grant agreements, vesting reports, exercise confirmations, and sale confirmations.
- Forms W-2, 1099-B, 3921, 3922, and year-to-date payroll withholding records.
- Prior-year AMT, AMT credit, capital loss carryover, and Form 6251 records.
- Broker cost basis reports and supplemental stock plan statements.
- Advisor-provided transaction assumptions without investment recommendations directed to the CPA.
CPA coordination process
How the review typically works
- Classify equity events by type and tax-reporting form.
- Project ordinary income, capital gain, AMT, withholding, and estimated-tax needs.
- Identify basis adjustments and documentation needed for Form 8949 and return preparation.
- Coordinate post-transaction records after the client and advisor make investment decisions.
Frequently asked questions
Can Averkamp recommend whether to exercise options?
No. Averkamp does not recommend investment transactions. We can model tax outcomes for scenarios identified by the client or advisor.
Why can stock plan basis be wrong on a broker statement?
Some broker reporting may not fully reflect compensation already included on Form W-2. Supplemental records may be needed to avoid incorrect Form 8949 reporting.
Why does AMT matter for ISOs?
Incentive stock option exercises can create AMT adjustment items. A projection helps estimate whether AMT or AMT credit issues may arise.
Authoritative tax references
IRS resources commonly used in this review
These IRS resources are starting points for the tax rules and forms involved. A client-specific filing position still depends on the client records and full facts.
Related advisor resources