I started an LLC, taxed as sole proprietor, in Sep 2019 and asked my only customer to delay payments until Jan 2025. They agreed but asked me to send monthly invoices so they had accurate accruals. They've been great - everything has gone to plan.
I haven't received a 1099 for 2024. This seems correct because I understand 1099s should be on a cash basis.
BUT in the past I've received 1099s on an accrual basis. I'm concerned this customer's big 4 accounting firm will eventually file a 1099 reporting this income in 2024. So if I exclude it on Schedule C, the IRS will adjust it and send a CP2000.
I'm considering adding this income to Line 1 and then subtracting the same amount on Line 6, just to be on the safe side.
Any reason I shouldn't do that?
