Received a 1099 NEC for 2019 and now another 1099 NEC for 2020 for the exact same work.

[f8eddie1-gmail-c]

Vendor sent me a 1099 in 2019 for 710.00.  He has now sent me a 1099 in 2020 for the same work in 2019, exact same amount - 710.00.  He said he did not file it in 2019 and is filing it in 2020.  However I filed the income in 2019.  Now I have a 1099 for 2020 for income I did not receive.  How should I go about correcting this.

[Bsch4477]

I assume that you report your income on Sch C. You could report as income the 1099-NEC and then deduct as a miscellaneous expense the same amount as “income incurred and reported in 2019”.

[f8eddie1-gmail-c]

Yes I reported it as income in 2019 via Schedule C.  If I claim it as an expense in 2020, would that reconcile the 1099 he sent me in 2020.  He claims he did not report it in 2019, so I assume that means that although he sent it to me in 2019, he did not send it to the IRS, and is sending it to the IRS in 2020.  If I claim is as an expense in 2020, will that be some kind of a flag for the IRS that could trigger an audit?  Also, if I claim it as misc expense in 2020, do I need to now send him a 1099-NEC for the expense?

[Mike9241]

assuming you use the cash basis of accounting, if you were paid in 2019 it's 2019 income and if paid in 2020 it's 2020 income. if it was 2019 I would show under returns and allowances in 2020

[Bsch4477]

You don’t have to concern yourself with his situation. The point is that you claimed income and paid tax on that income in 2019 so you are zeroing out that same income in 2020 because it was already taxed. In the unlikely event of an audit it would be easy to explain why you did what you did.