Basis of Employee Stock Award

ProSeries

I need your help in determining the basis of a stock award. Here are the specifics.
on w-2 accompanying information 1636.90 is listed as "share value program", which is a component of taxable wages.
on "residual" ck stub:
share value program - 1636.90
share value stock amount - -1058.40
withholding taxes - -534.45
net amount of check - 44.05
txpyr was issued stock valued at 1058.40.
I believe that his basis is 1636.90.
Am I correct?
thanks so much for your feedback.

The basis is actually $1,592.85 (1636.90-44.05. The 44.05 was the residual they received in cash), but you were a lot closer than many preparers who have done these returns.

The share value program is a trust set up for Boeing employees and they receive a distribution of stock every two years if the price rises above certain levels. Many sell the stock right after they receive it. A huge number of tax returns prepared for these individuals have been done incorrectly (in some cases the preparer is putting the entire amount on the 1099B as STCG). A prior distribution was received in 2006 (Where some were receiving more than $4,500). I would ask to take a look at the client's 2006 return to make sure it was done correctly.