IRS indicate I missed reporting 1099G, but I have 1099B for big lost and that is why I didn't report 1099G. What should I do?

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Accept IRS finding and pay what you owe. You can Not report just the net; you have to report All 1099 forms. 1099B is (mostly) for capital gain/loss, 1099G Government payments. Different kinds of income, treated differently for tax purposes.

the 1099-B loss that is deductible in any one year is limited to $3,000 while the entire 1099-G amount is taxable. (there are certain exceptions for a 1099-G that represents a refund of state income taxes. the taxability of that can be complicated.