My question is... should I still send in the 1099's writing "refused"under ssn or would that put me more in jeopardy of getting an IRS audit?

If you would like to see the guidelines for IRS auditors regarding Cost Seg, you can find them starting on Page 24 of this document https://www.irs.gov/pub/irs-pdf/p5653.pdfI would be very surprised if you could claim unpaid labor in your Cost Seg. 

And as I told the Auditor why would I go to Indy in Feb.. and look I have 10 loans on my books in Indy and I live in Oregon..

It makes a difference in one situation only: when you have IRS troubles such as an IRS audit or an IRS debt.

You can also search the county auditor and treasurer's site to see if the taxes are being paid or if they are delinquent.

You cannot plan for IRS auditors.

For accurate info on the property, you have to sort through public records straight from the auditors page and every county's page is different. 

We find your information on the auditor's website and skip trace you.

So if you are planning to claim that, I would certainly create and document more that the minimum required hours..the more hours you spend the better it is in case an auditor throws out some of the hours in examination. 

I have internal and external auditors at my desk monthly.