I recently received an incorrect 1099 from a former client with whom the relationship was severely strained. The form overstates my earnings by $20,000, and I highly doubt this client will be willing to collaborate to fix this mistake. In fact, I believe this overstatement is probably on purpose and the product of resentment.

How should I proceed with this? If I report the incorrect amount and then adjust it with a deduction, am I setting myself up for a guaranteed audit?

I would appreciate any advice that will help me navigate this as painlessly as possible.

Thanks.