@BobKamman... Your comment doesn't make any sense. Have you ever looked at a 1099-misc form? Are you aware of the information contained on that form? Are you aware that the Payor sends copies to the Federal, State & Local tax departments? By inputting the details of the 1099 form, you are proving that amount has been included within the Gross income of a Schedule C,E... etc. (Per the IRS agent we spoke to as we confirmed that it was already included within the Gross that was reported).

Personally, I'd prefer to input only into the Schedule... but, if it will stop the inquiry from the IRS, as to whether or not it was included... I will surely do it.

(I've only had this problem happen with a few Schedule C clients... not 1120, 1120S nor 1065 filers)