The IRS is not going to change the SSN to an EIN; moreover, there is not reason to do so. You can do what either MaryK4 or ThomasM125 suggested. I have personally done what ThomasM125 suggested, both for my personal return and for clients and there has never been an issue: File Schedule C, report the income on the 1099-NEC and add an item under Miscellaneous/Other expenses for the same amount. Call the expense something like "S-Corp income paid to taxpayer in error". Whether the issuer is alive or no dead has no impact on the situation. The IRS just wants to see that income on the 1099-NEC is reported.
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