QUESTION DETAIL
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I did some freelance contract work for a publisher at the end of last year. I invoiced them for over $600 but didn't receive the final check until the beginning of this year. Excluding the final check, I was under $600. I asked them if they were going to issue a 1099 and haven't gotten a straight answer. Since I'm a independent contractor, I'm on a cash basis but I'm not sure about them? If they are on accrual, would they issue me a 1099?
ANSWER
Expert Thomas Graham iii's Answer:
In this case they would not issue you a 1099 that would include the last $600. The 1099 is based on payments made during the calendar year to you. In this case the payment was actually made during calendar year 2012.
I can understand your confusion however. The other company being on an accrual basis in this case is irrelevant to our matter. They would have accrued a liability on their books due to them owing you money. But the key importance is on the word "owing" rather than having "paid" you money in the calendar year.
