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Posted by Harlan Lunsford on January 7, 2008, 5:35 pm
Please log in for more thread options Bill wrote:
> Janie@nospam.com.invalid (Janie) posted:
>
>> Arthur Kamlet wrote:
>> In article
>> <geydnfZDR7ppjxzanZ2dnUVZ_jKdnZ2d@rcn
>> wrote:
>
>>> On January 4, 2008, I received a check from
>>> a client dated 12/31/07. The client will
>>> include this amount on the 2007 1099 he
>>> files with the IRS. However, since I am on a
>>> calendar year accounting system, it is
>>> income I received in 2008.
>>> Should I report it on my 2007 or 2008 taxes?
>>> [elided for brevity]
>
>> If you did not receive it until 2008 then for you
>> it is 2008 income.
>> Just report it as received, and if the IRS
>> should ever ask, tell then what happened.
>
>> Thanks, Art. I guess I'm a little afraid that the
>> discrepancy will trigger an audit. Am I being
>> needlessly paranoid?
>
> Yes. If it were questioned, it would probably be a routine letter
> inquiry, easily answered as Art suggested. Don't sweat the small stuff.
>
> In fact, unless you have major discrepancies, audits are not to be
> feared, based on small items like this.
Matter of fact, I have never seen a CP2000 letter on just such a
situation, even for a schedule c filer.
ChEAr$,
Harlan Lunsford, EA n LA
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