Thank you for your reply. When I put a negative entry on the second 1099, it does not change my taxes owed. As if it doesn't even recognize the negative number. I assume it's because it's highly unlikely to get a negative number reported in box 3 of your 1099?
Also, even if we figure out a way to make it recognize the negative entry, wont that automatically create an audit as their system will recognize a mismatch of 1099s due to the second 1099 being reported as a negative entry; however, their system will only show one 1099 as a positive entry?
