A1099-NEC filed by one of my clients stated they paid me more in 2020 than what I actually received. I assume it's because they mailed a check to me on December 31 that I received in January. I report on a cash basis.
How do I report this on my tax return? My QuickBooks income shows less than the total 1099-NEC's because I post payments on the day I receive them, not their check date.
If I use the totals on the 1099-NEC's then I will be filing a higher income than what I received.
If I file the total income that I actually received in 2020, will that be a red flag to the IRS for audit, since the 1099's tell the IRS that I received more income.
