My customer is withholding payments; do I have any recourse when filing my taxes?

Q: I am a commissioned salesman for a manufactures representative. A product I sold caused damaged to a building. (The product was designed poorly) My customer paid the bill prior to the damage, but withheld payment on future bills and the company I work for is not paying me my commission. (approx $8,000.00). Do I have any recourse when filing my taxes? —George, Peabody

The following answer was provided by Mark Misselbeck, CPA, Levine Katz Nannis & Solomon PC, Needham.

A: If you are on the cash basis (report income when received and take deductions, as paid), you will not report the commission income, until and unless it is paid. As to the prospect of recovering the commission from the company that you represented, that is a legal, rather than a tax question.

The following answer was provided by Barry Beck, CPA, Barry D Beck, CPA, PFS, DABFA.

A: Another aspect of your situation concerns the liability of the damage from the equipment. The question deals with the responsible parties to make the customer whole. This reason, as well whether you have a claim on the commission income, indicates why you should contact legal counsel.