I assume you did not make a Section 83(b) election when you received the grant; that certain appears to be the case given what you've posted.
"they gave me 563 shares out of the 1,300 at a share price of $19.55 and
withheld 210 shares to pay for taxes so I was only given a certificate
for 353 shares."
What should have happened here is that Box 1 of your W-2 should have included "compensation" in the amount of (563 x $19.55) $11,006.65 and the various "taxes" boxes should have included the (210 x $19.55) $4,105.50 withheld. Entering your 2013 W-2 should have been all you needed to put on your 2013 income tax return in the absence of a 1099-B for the 210 shares of your stock that was, in effect "sold for taxes." (In this situation I wouldn't expect that you'd get a 1099-B.)
"With all that said, how do I calculate cost basis given the drop in
share price and how do I note the company withheld shares to pay for
taxes but did not show anything on the 1098-B they just mailed to me."
Your per share basis was fixed at that $19.55 figure at the time of the vesting. You have a long term capital loss of (($9.65 - $19.55) x (353)) $3,494.70. The "capital" transaction - the sale of the shares - is completely separate and distinct from the original vesting which created "compensation" and the need for the associated "withholding." Those taxes were reported in 2013.
Tom Young
