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Two notes, 1. If 2009 income reported in 2008 exceeds your 2008
reported income in that category, you sould report that (the mismatch
not the income)on your 2008 return, or you will receive a correction
request from IRS for your return based on the matched 1099's.

2. If the client is related to the supplier(same rules for relatedness
as wash sales), they may not recognize expenses for tax purposes in a
period prior to which the supplier reports the related income.

Bill Patch
Hilliard OH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Rocky" <kuhnra[at]hotmail.com> wrote
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January 2nd isn't here yet, so this is just an example of course.

For cash basis taxpayers, of which you might be, you report your income in
the year received.






- quote -


Why perpetuate this mess?

I wouldn't do it.




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It is correct based on the client's books, which is how they must prepare
their reports they send to the IRS.







--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I get paid by a corp (1099 misc) and I use part of the payment to pay
(1099 misc) 3 other subs. If I receive a check by mail from the corp
on 1/2/2009 (but they include it on the 1099 misc that they send me),
what year do I declare the tax for the payment?
If 2008, can I pay my subs immediately after (obviously in 2009) and
include those payments as 2008?
If 2009, then the 1099 misc from the corp to me will be incorrect. Is
that OK?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >