By entering the Form 1099-Misc and then entering a negative adjustment to Other Income you may prevent the IRS from questioning you about the income reported on the 1099-Misc, which they would likely do if you don't list it on your tax return.
It is possible they may question the negative income entry as well, but perhaps less likely. I suggest you contact the company that issued the Form 1099-Misc in writing and demand that they provide you with proof that you were paid, and if not who was paid. It's possible they paid your employer and then your employer paid you. In that case, you'll have proof that you weren't paid twice. In any case, you'll have documentation supporting your claim that you weren't paid twice. You may need that to convince the IRS.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
