End of year tax planning must include a review of your accounts receivable to determine the impact on income for the calendar year. A realistic assessment needs to be made upon the likelihood of collecting the receivable and its impact on income.
If your company uses the accrual method, those monies invoiced, collected or not, are recorded as income for the calendar year they are invoiced. Carrying the receivable or writing-off the receivable (and decreasing income) is a decision that should be made with your accountant and collection attorney.
Please call Frank, Frank, Goldstein & Nager, P.C. for further information on reviewing your accounts receivable at (212) 686-0100 or email Jocelyn directly at JNager@ffgnesqs.com.