SusanY1
Expert Alumni

Self employed

Since you never received the money, it shouldn't be in your overall revenue if you are a cash-basis taxpayer.  No additional adjustment is necessary aside from not showing the invoiced amount as income.  

However, if you are an accrual-based taxpayer, and this income was reported in a prior tax year you may need to make an adjustment.  Let us know if this is the case for you.  

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