First and foremost, get in touch with the CC processing company. Be persistent and get a corrected 1099-K issued.
If that cannot be done, when you file your return, include the amount on the 1099-K, then take a deduction to arrive at the corrected amount. Attache an explanation as to the reason for the deduction.
You could put the amount in gross receipts, then a deduction in returns and allowances.
My opinion is that without a corrected 1099-K, there will be an inquiry from IRS.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
