At 12:51 AM 3/19/2004, Edmund Cramp wrote: ><snip> > > This has been 4 months and I have yet to be paid for my 3 hours. ><snip> > > What would you do in this situation if you were me? > >If you are working for the conslutant then the "contract" is between you >and the conslutant - who should pay you regardless of billing issues >between the conslutant and the client. In future require prepayment from >this conslutant. > >All this is good in theory - however you need to recognize that sometimes >you will not get paid ... this is called "bad debt" and can be written off >when you file your taxes... so it's not a total loss.
I think it is going to be neutral on the taxes -- if you had loaned money that didn't get paid back, then that's a bad debt. Here, he has uncollected income. Either he reports the amount as income AND writes it off as a bad debt, or ignores both sides. Unfortunately, you can't have your cake and eat it too.
