1099NEC – how to correct over-stated payment for our friends at the IRS?

Real estate investment gone sideways. I loaned $xxxxx to a developer. Earned $yyy of interest. Their real estate agent was compromised and a man-in-the-middle attack had the title company send the payoff to miscreant. Title insurance company made good on loss, but sent a 1099-NEC stating $xxxxx+yyy in box 1 was paid out. The principle plus interest, where only the interest should be taxable.

What is the best way to have this corrected? Revised 1099, or somehow inform the IRS of the details so as not to be taxed on the principle returned?

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