Personally, I would report that amount on Schedule C, then enter an equal amount as an "other expense" (I might call it "Nominee Income" and include the EIN of the corporation).

That will avoid the IRS notice.

As Susan said, "theoretically" you don't need to do the corporate return first, but I suspect it is usually a good idea to do the corporate return first, especially for late-filers that tend to do things wrong (money taken out of the corporation without showing wages, dividends or loans).   😁