Self employed

If they change and report the income on a new form, they would let the IRS know the other form is no longer valid. 

If they change and use Form 1099-MISC, it can be entered and backed-out as a 1099-MISC. (the way I listed in the original answer)

 The program won't allow that (enter and back-out) with Form 1099-NEC.

Form 1099-S would work as well and maybe be better since that is not "matched" by the IRS the way form 1099-MISC and 1099-NEC are. The 1099-S would be kept with your tax file and addressed if the property was later sold. 

I don't know what the response would be from the local government, it's just a mistake so I don't see them making a fuss. Form 1099-NEC was resurrected several years ago by the IRS so that they could know EXACTLY what income is Self-Employment, but not everyone understands this. Try to point out that it is Non-Employee Compensation. 

According to the IRS:
"File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.

At least $600 in:
Services performed by someone who is not your employee (including parts and materials) (box 1); or
Payments to an attorney (box 1). (See Payments to attorneys , later.)"

IRS 1099-MISC versus 1099-MISC 

"Easement. The amount received for granting an easement is subtracted from the basis of the property. If only a specific part of the entire tract of property is affected by the easement, only the basis of that part is reduced by the

amount received. If it is impossible or impractical to separate the basis of the part of the property on which the easement is granted, the basis of the whole property is reduced by the amount received."
 

IRS Easements Pub 544