How do you handle income from a "go-fund-me" with a 1099 NEC from a company client never worked for. IRS rejected return based on unpaid Social Security tax

"IRS rejected her return based on unpaid social security tax on that money"

Rejected? or sent a letter looking for the SE tax?

Personally, I would have plunked that NEC amount on a Sch C, then backed it out as Other Expenses with the description that it was from a Go Fund me and considered a gift, not income. To avoid the IRS correspondence.

An NEC form should never have been issued.

go fund me is a gift

they should not have received a 1099 at all.

you could link it to a schedule c then put an expense called nontaxable go fund me and net out to zero income.

So, this is a 2024 return and IRS sent a CP-2000?  All they want is SE tax?  So she paid income tax on it?  Or maybe was in a zero income tax bracket so it wouldn't make a difference?  

Was there a connection between the motorcycle company and the deceased son?  Like, he was an employee?  Do they collect money for every motorcyclist who dies accidentally?  And then send all of them a 1099-NEC?  

How did IRS reject the return?  How was it shown?  Why was it reported anywhere in the first place?  If you receive a gift, it's not taxable, even if the Pope sends you a 1099.