Broker fails to report 1099

[cmy28]

What to do if my broker does not report 1099 to the IRS? 

I was expecting a very large tax refund due to over-withholding by my broker. They issued me a 1099, correctly showing the amount withheld. However, the IRS considered my tax return as frivolous. I spoke to the local IRS office, who told me that the reason was they do not have my 1099 sent to them from my broker (I attached my copy to the tax return when I filed). They did not provide additional help beyond this information.

I contacted my broker many times. They are not responsive and not coorperating, aside from asserting that all 1099 issued to customers are already sent to the IRS, which contradicts what the IRS said. 

I tried my best but have no control over the broker's behavior. The IRS does not have a record of my tax withheld and they did not accept my own copy of the 1099. What should I do?

[tagteam]

https://www.irs.gov/government-entities/federal-state-local-governments/appeals-process

[cmy28]

Thank you. I understand that I have the right to appeal and will do.

My key concern is: Since the broker did not report the 1099, there is no proof or evidence of the actual amount withheld. Any claims that I tend to make in this situation, based solely on my personal copy of 1099, would be fragile and easily deemed as unsubstantiated. Is there any critical measures that I can take to address this particular situation?

[tagteam]

Other than taking action against the brokerage firm, probably not.

Brokers are licensed and you can file a complaint with FINRA.

See https://www.finra.org/investors/need-help/file-a-complaint

[VolvoGirl]

What kind of 1099?   1099B?  Do you have any statements or confirmations for the sales and deposits of the net proceeds?  Where did the deposits go?  Like into your bank account.  Your broker statements should show the activity.   If you sold something for $10,000 and they only deposited 9,000 that would support 1,000 withholding.   

[cmy28]

Thank you very much. Yes, I do have detailed transaction statements from the broker that shows the amount withheld in each transaction that sum up to match the total withheld on my copy of the 1099B. Although, I think these were not reported to the IRS either.

[VolvoGirl]

No but they were reported to you from the company.   It should count as backup.