I have my own consulting LLC (cash basis for tax) which had a lot of net income for 2019. During the year, I paid another consulting firm for training and consulting work while looking to build out my area of expertise and my overall practice. The other firm was unable to deliver and promised to refund the money by the end of 2019. They mailed the check on 12/30/19 and I received it today (1/2/20). Two questions. 1) Do I report the expense in 2019 and refund in 2020 since I'm a cash basis tax paper (Schedule C) and 2) Do I need to issue a 1099-Misc for 2019 even though I received the money back. I was told I will not receive a 1099 from the other consulting firm since the amount was refunded in full in the same year. I would prefer to take the expense in 2019 and show the income in 2020
