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? And if on my 2008 taxes, will such a conflict with the amount on my 1099 and the amount on my Schedule C cause the IRS to question/audit me?
Thanks.
Janie