Keystone refused to amend/cancel the 1099. I did send Keystone an email with a signed letter (attached as a pdf file) requesting them to change the 1099, along with the text of the letter embedded in the email itself. I specifically stated in the letter that the “income” stated on the 1099 did not meet any of the IRS criteria for income. (I felt that this was an important step to show IRS that Keystone refused to correct their error). Keystone did reply to the email with (in my opinion) a very weak excuse for their refusal.
On my tax return I declared the income and then deducted it later, following AmyC’s recommendation. IRS processed my return without question. But, of course, they have 7 years to do so. I saved all documents, receipts and emails just in case.
Let me know if I can be of further assistance.
