I also received a 1099-MISC for serving on an NSF review panel as well, and I reported it. This means the 1099-MISC was also reported to the IRS/government; therefore, you should report the payment. However, you can deduct (substract) the travel related expenses such as lodging, meals, etc., from the NSF payment, which significantly reduced the taxable income for me. TurboTax simply "walked" me through the process to do this.
