I answered this issue in the other post that you created and mentioned to get a corrected 1099 MISC. That is you best option.
A second option would be is to report the 1099 MISC for the full amount and then exclude $290,000. This may run the risk of an IRS audit but you would prevail because you should not be responsible for attorney fees. Here is how to report.
- Log into or open Turbo Tax
- wages and income
- Common income
- Report 1099 MISC
Once this is complete, Go to:
- Less Common income
- Miscellaneous Income, 1099-A, 1099>start
- Scroll to the bottom of the page to Other Reportable Income
- Other taxable income, answer yes
- Then give a brief description of the income and the amount listed..
- Here describe this as offset attorney fees for 1099 MISC and list the amount as -$290,000. This will exclude $290,000 of taxable income from your return.
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