Hello-

I am a self-employed individual who just received a CP2000 letter from the IRS regarding a Form 1099-Misc.

Apparently, one of my clients who sent me a Form 1099-Misc in 2012 reported my self-employed income in box 3 instead of box 7. This generated an automatic letter, etc. since I did not report any income on line 21 of my Form 1040 (I included it on line 12, from Schedule C).

What is the best way to explain this to the IRS? The individual who erroneously reported the income on Form 1099-Misc is not willing to correct the 1099-Misc (since his return has already been filed and doesn't want to raise any red flags). Should I just explain that the income was reported on line 12?

Thanks in advance for any help you can provide.

Michael