Patrick Michael Posted January 10, 2023 Report Posted January 10, 2023 Client received an invoice for plumbing services (vendor is a Sole Proprietor) in December 2022 but did not pay it until 2023. Preparing 1099's and was wondering if 1099 should be issued in 2022, when services were rendered, or for 2023 when invoice was paid. Client is cash basis. Quote
BulldogTom Posted January 10, 2023 Report Posted January 10, 2023 1099s are for payments made regardless of accounting method of payer or recipient. Tom Longview, TX 7 Quote
Tax Prep by Deb Posted January 11, 2023 Report Posted January 11, 2023 But the trigger for the 1099 is when payment is made. Correct? 5 Quote
Pacun Posted January 11, 2023 Report Posted January 11, 2023 The service provider could report the income in 2022 or 2023 depending of the accounting method, but your client can only issue the 1099 for the year in which the money was paid, as Bulldog Tom said. 4 Quote
BulldogTom Posted January 11, 2023 Report Posted January 11, 2023 7 hours ago, Tax Prep by Deb said: But the trigger for the 1099 is when payment is made. Correct? Correct. Tom Longview, TX 1 Quote
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