There is no way to "offset" the taxable amount reported on the Form 1099-R. Your only option is to file a substitute Form 1099-R (Form 4852) claiming that the Form 1099-R is erroneous and that the payer refuses to make a correction. Filing a substitute Form 1099-R to show that the value of the shares distributed was $0 (or whatever value you can substantiate) requires printing an mailing your tax return.
