- quote -

Which they should have because they paid you in 2003.

- quote -

That is in 2004 and has no bearing on what you have to
report in 2003.

- quote -

Don't we all--want to avoid paying taxes, that is.

In 2004, it becomes a refund to the customer IF you paid it
back and is deducted from your total income for the year.

Carol
What can one expect of a day that begins with getting out of bed.

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I did some work for a customer during the last 3 months of
2003. They paid me for about 1/2 of the invoiced abount.
In mid December we put the project on hold for a review. In
January I agreed to pay them back the abount they paid in
2003. However, they generated and filed a 1099 with the
amount they had paid. I want to avoid paying tax on that
sum since I have to pay it back to the customer. Is my only
recourse to wait till next year for a refund ? If not how
do I file this year ? Can I treat it as a 2003 customer
refund ?

Thanks,
Troy

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