Interest has to be reported as interest.
It can't be reported as business income, because business income is taxed differently.
But if you previously reported the interest income as business income you should not be taxed twice on it. The interest income should come off your business schedule and be reported as interest income.
This should either be a wash, or it should reduce your tax.
You should dispute the amount you have to pay with the IRS. Explain that the income was reported elsewhere on the return, and if they want to add interest income they need to reduce business income in an equal amount.
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