S Corp Check written from Client on Dec 31 2016 but encashed in 2017.

Forum|Forum|7 years ago
June 1, 2019
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I worked for a client in Nov 2016 for which they mailed me a check dated Dec 31 2016. Since i got the check in mail in Jan 2017 , I desposited the check in the S corp Bank Account the amount came in my bank in 2017 , Should I be repoting this income for 2016 or 2017?

Thanks

Best answer by

If your S corporation operates on the cash basis (you report income when received and expenses when paid), a check received in 2017 is considered to be 2017 income.

Anonymous

Answer

If your S corporation operates on the cash basis (you report income when received and expenses when paid), a check received in 2017 is considered to be 2017 income.

kevin_ny_2003Author

Level 4

Thanks for your reply , yes we report on cash basis ( income received And expenses incurred ) . The client company sent me 1099 with the same amount for 2016 . In this case how do I let IRS know or should I ask for correction in 1099 issued by the client ? Thanks