I received a 1099 misc. form for a stipend that is supposed to be tax exempt.

My regular tax preparer refuses to work on my taxes because I received a 1099 for a stipend I received last year from an organization I volunteer for part time. The tax preparer claims that the 1099 should never had been issued and the IRS will count the income entered in box # 3 of the 1099 misc. form. The organization's management issued an award letter showing the stipend is tax exempt but will not issue a new 1099 eliminating the stipend amount on the original 1099. What steps should I take and is the tax preparer correct or the organization's management?
Answers
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It looks like your stipend may, in fact, be taxable. Although this is an older document, it is an IRS source that specifies stipends reported on a 1099-MISC are considered taxable compensation.
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Thank You.
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