That is good to know, because I understood that they would have to unflag it if the stocks were sold. So if lets say, the 1099 can't be corrected, what do I do if from all purchases and sales of the stocks I have a cost of $700k to purchase, proceeds of $625K... washed sales for $70k and only a recognized loss of $5k? Would the $70k in washed sales disallowed be used to lower other income I had from trading (I have other accounts that are in considerable profit)?
