In this instance providing services or resale of product doesn't really make much difference to your taxes. You will still put this on your tax return as income from business. It's just that you won't be able to deduct the cost of product that you sold from the income that you received.
If the amount that is shown on your 1099 is different than the amount that you actually received then you should still enter it on your tax return (since you can't request a corrected form) but then make an expense entry to correct the amount shown to the amount actually received.
For instance, if you received $4000 but the 1099 shows $5000 then you would make an expense entry for -$1000 and label it as "correcting entry" or something similar.
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