1099-NEC is to report Non-Employee Compensation and can only be used to report Self-Employment (Contractor Work) income.
Unless you can link this to a business, it will be difficult to report.
If you are a Real Estate Professional or Builder/Developer, enter as business income.
If this was a personal residence, it should have been reported on Form 1099-MISC.
Form 1099-NEC can trigger Self-Employment (FICA) tax, where Form 1099-MISC reports "Other Income".
You may need to have the firm correct the filing and use Form 1099-MISC.
Can you clarify the details of the failed contract and your role in the transaction?
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