Tom, you had better tell your friend to report the income in the year stated on the W-2G form or 1099G or whatever. This is what the IRS is going to recognize and any complaint regarding the date the money was received must be resolved with the issurer. If your friend decides to do otherwise, let him be prepared for an onslaught of correspondence with the IRS and I will be more than happy to give you odds as to who is going to win.<g>