Why do you want to report income that a tax professional told you is not taxable?
You can report phantom income as "other income" without a 1099 or other document. It would be the same as if someone made a taxable payment to you in cash with no documentation. However, you cannot report it as income if the additional income makes you eligible for any tax credit, deduction, or other benefit that you would otherwise not be entitled to. It's safest to not report made-up income on your tax return.
