Yes I reported it as income in 2019 via Schedule C. If I claim it as an expense in 2020, would that reconcile the 1099 he sent me in 2020. He claims he did not report it in 2019, so I assume that means that although he sent it to me in 2019, he did not send it to the IRS, and is sending it to the IRS in 2020. If I claim is as an expense in 2020, will that be some kind of a flag for the IRS that could trigger an audit? Also, if I claim it as misc expense in 2020, do I need to now send him a 1099-NEC for the expense?
