I have a similar situation. We paid $3250 for a retainer in 2022, and only when the consultant received the 1099 did they claim that $500 was earned services and the remaining $2750 needed to be returned (one year later). We issued a 1099 based on the full retainer paid, and the consultant said they "forgot" to mail the unearned $2750 (last year). To date, the refund has not been received. If it does show up in the next few days, one year later, do I void the 1099, as the net payout will be reduced to $500? Advice, please, and thank you! Can't the attorney claim an adjustment on his 2022 tax return for the refunded difference if we truly end up receiving that refund of the retainer?
