I have a similar situation where I received a 1099-MISC, but it was really interest earned on crypto holdings (they even label the accounts as interest bearing accounts, but for some reason, they've been guided by their tax/law team to issue 1099-MISC). The solution makes perfect sense, but I'm curious if this will create an audit flag, since there will not be a corresponding 1099-MISC submission to match with what the IRS received? In my case, it's relatively negligible amount of self-employment tax owed, and trying to weigh the risk/benefit of just paying the tax to lower the risk of being audited. Although, I certainly hate to pay any taxes that I shouldn't be obligated to pay. Thanks in advance.
