Nilo Mitra <nmitra[at]att.net> wrote:

- quote -

The pros will have to confirm this, but if the check was
received in 2006 it is 2006 income for your wife but a 2005
deduction for the payer. This is a rather common situation
with 1099-MISC income. You don't file the 1099-MISC with
your income tax return. It would be useful, but not
necessary if your wife could show in some manner that the
check really was not received until January 3. Even the
December 29 postmark might be enough is the origin location
was far enough away. However, usually no proof is
necessary.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Just report ALL the income received in 2005 and ignore the
1099. Unless all of her clients sent her 1099s, the numbers
won't match up for total income anyway. Keep good records of
all income received, and if the IRS questions anything, you
will have the documentation to show that it was received in
2006 and reported on the 2006 tax return.

Dennis

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Please will someone help me with a question on a 1099-MISC
income.

My wife is a sole proprietor of a small business, which she
runs on a "cash basis".

She billed a client at the end of 2005. The client sent her
a check dated Dec 29, 2005, which check she did not receive
until Jan 3, 2006 and which she deposited on Jan 6, 2006.

The client however supplied her (and the IRS) with a
1099-MISC for 2005 for that amount.

Will she have to claim this amount as income for 2005 even
though the money was not available to her until 2006. She
would like to claim the money as income for 2006, as that is
when she had the actual use of the money.

What is the best way to handle this, since the IRS has also
been sent the 1099-MISC (2005) claiming that she earned the
money in 2005.

Thanks in advance,
Nilo Mitra

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >