If the 1099 was issued in your name only, but half of the proceeds belong to your friend (or whatever arrangement you and your friend have regarding splitting the proceeds) then you may have what the IRS calls nominee income. Pursuant to IRS guidance regarding nominee income (income received in your name but that belongs to someone else) you must file a 1099 with the IRS and provide a copy of same to the other owner. Below is the IRS guidance on this issue.
Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the IRS Submission Processing Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “Filer.” A spouse is not required to file a nominee return to show amounts owned by the other spouse. The nominee, not the original payer, is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
The above information was obtained from the following link:
General Instructions for Certain Information Returns (2022)
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