How do i remove the Income Tax Type from a paid/cancelled payable invoice?

We have a payable that was paid to the wrong supplier after the business was sold. The payment came back and the payment and the payables invoice was cancelled. The credit was done in Jan so the amount doesn't net to zero for 2022. We need to remove the 'Misc7' from the distributions lines so the payment does not show up on the 1099 report or form. Is there a way to accomplish this?