DavidD66
Expert Alumni

Business & farm

You don't do anything with the $5,900 unpaid invoice for your tax return.  You didn't recognize it as income, so you can't write it off as a loss, unless you are on an accrual based accounting system and you reported it as income on last year's tax return (which I doubt you are).  It is just revenue that never happened, which isn't reportable.  It's unfortunate, but not a taxable event.  

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