No. As stated by @MaryK4 a loss or bad debt is only sustained for tax purposes if the income has been reported and included in taxable income on a tax return. In your case you did not take in the income, and therefore had not income reported on your tax return. There is no loss or bad debt for tax purposes.
Cash method. This method is determined the first time you file a tax return and is only changed by request of accounting method.
If you use the cash method of accounting, you generally report income when you receive payment. You can’t claim a bad debt deduction for amounts owed to you because you never included those amounts in income. For example, a cash basis architect can’t claim a bad debt deduction if a client fails to pay the bill because the architect's fee was never included in income.
- Publication 535 - This covers both accounting method changes and bad debts.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
