I agree it's stupid to add something  on Schedule 1 and then subtract it on the same form.  We tax income, not pieces of paper.  But there are those who think every 1099 needs to show up on a return, and that's what they are doing. 

I have never seen a CP2000 generated by a $250 adjustment, which is the most that's involved here if IRS decides to tax it, but maybe if there is another missing item it could be an issue.  In that case, they would ignore your explanation anyway.  I would say it's just as likely for IRS to audit returns that show weird adjustments on Schedule 1.  Or, at least delay their processing until someone takes a closer look.  

When your doctor taps your knee, there's not much you can do about the knee-jerk reaction.  But when your client brings you a 1099 for something that is nontaxable, you can train your knee not to jerk.