If you pay someone before the end of the year, say date the check or whatever for Dec. 30th or Dec. 31st.....but they don't cash it until maybe January 4th or 5th......
Do you still send them a 1099 form....since you actually PAID it that year....regardless of when they actually cashed it?
2007-12-23 03:26:24 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
If you cut the check(s) at any time during 2007, you include the amount(s) on the 2007 Form 1099. When they actually cash the check is irrelevant.
2007-12-23 03:33:18 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
Yes. Receipt of a "good" check (one that does not bounce or get returned by the bank due to insufficient funds or being drawn on a closed account) constitutes contructive receipt of payment for tax purposes, even if it is not cashed until a subsequent year.
2007-12-23 13:45:13 · answer #2 · answered by StephenWeinstein 7 · 0⤊ 0⤋
The rule is when you actually set the money aside specifically for them. In your case, it's when you wrote the check.
2007-12-23 12:33:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋