For those with no qualms about reporting fictitious income and deducting fictitious expenses, play "trick the IRS computer."  

I attach an explanation to the return, assuming IRS will not read it but it can be sent again if a notice is received from IRS.  If you assume that every IRS reviewer won't be able to spot 4,500 on Schedule E and figure out it's the amount shown on the 1099, you're probably half right.  But "automated underreporter" is not fully automated.  An IRS employee is trained to spot mismatches like that.