Supplied 1099-NEC has Error in Block #1

[sstech2000]

I did some consulting for a company in 2023.  1099-NEC they supplied has an error of $4500 in their 2023 1099-NEC. This happened because they paid me late in 2022. However, I received the $4500 payment on 31 Dec 2022, and the check was dated 27 Dec 2022, so I booked it as 2022 Tax year.  However, the company listed the $4500 income the 2023 1099-NEC because it hit their bank in Jan of 2023, although it was written in 2022 and I received the check in 2022.  BTW, the company did not issue me a 1099 for 2022.

How do I resolve the disparity in what they filed with the IRS, meaning the 2023 1099, since I already paid taxes in 2022 for the $4500.  I would be paying taxes again in 2023 for the same $4500.

[PatriciaV]

Report the actual amount you actually received in 2023. Timing differences are common between businesses and cash-basis taxpayers. You have documentation to show you previously reported and paid tax on the difference, which you can produce should the IRS question the income.

[sstech2000]

Thank you.  How do I reduce the income?  Do I edit the 1099-NEC to reduce the income?

[RobertB4444]

No, you create a $4500 expense and title it "Cash received in 2022" or something like that.  And you maintain the proof that you deposited those funds in 2022 so that if you're ever questioned you've got the backup.

@sstech2000 

[sstech2000]

Thanks....I will make the change that way.