You can request documents from the IRS. You want to request a copy of the bogus 1099 that the IRS received for you. You probably want to check other years as well to make sure this problem doesn't also exist in 2019 or 2021.

https://www.irs.gov/individuals/get-transcript

You can challenge it in both places. If the employer is basically a legit, non-shady employer then ask them why the fuck they sent this 1099. If there is shadiness, it might be a manager stealing from the company (manager says you're still working, pockets your salary himself). Perhaps they reported that they hired you to get PPP cash.

At the same time you can write a letter to the IRS stating the situation and flatly denying doing any work for the company in 2020 or receiving any money from them.

Sounds like the company committed fraud. Contact the IRS by phone and explain the situation. You may need to provide them with access to your bank account but more than likely they will start an audit on your former employer. You should also contact your state labor department and file an employment fraud claim. More than likely the employer used you for PPP but didn’t file unemployment.

This sounds a lot like the company trying to get that sweet PPP.

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It’s seems basically impossible to contact the IRS by phone right now. I’ve called so many times and they say it’s too busy and end my call

I’ve called a few times and got connected after 15-20 mins. I never call at first open. I think I usually called around lunch time.

It also depends on departments. For general 1040, then yes, good luck. For this instance, it should be fairly quick as this probably isn’t happening to a lot of people.