If a calif state reimbursed contractor is found to have overcharged in prior years, and is made to pay back the overcharges, which return should be amended? It is a cash basis taxpayer...
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I would just reduce sales in the year of reimburstment. If a 1099 for all his sales was issued and you need to reconcile to sales, pick this up as an expense or an adjustment to sales.Originally posted by jj140954 View PostThis post is for discussion purposes only and should be verified with other sources before actual use.
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Amend?
Are you sure that you need to amend? Since it is a cash basis taxpayer, it does not appear as if there was anything to change in the prior year, since the cash receipts for that year are correctly reported. In the year that the repayment was made, you would have an adjustment to the receipts for the year. IMHO
LTOnly in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".Comment
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