I think the word "fraud" is a little harsh. Obviously the taxpayer is trying to do the right thing. I'd suggest he email the IRS at <a rel="nofollow" target="_blank" href="mailto:irs.gov.website.helpdesk@speedymail.com">irs.gov.website.helpdesk@speedymail.com</a> and explain his situation, and ask if his barter income can be properly reported on Schedule C.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
