basis calendar year.

If the prior accounting firm, Bikini, CPAs, made a significant mistake on Sponge Bob's $2018$ U$.$S$.$

individual income tax return. Sponge Bob files his return married filing joint. In $2018,$ Bob was in

the $39\mathrm{.}6\%$ federal tax bracket. His income in $2019$ was significantly lower since he reported a

loss from his distributive share from Superior. Consequently, he was in the $24\%$

tax bracket in $2019.$

CPAs neglected to inform Sponge Bob to accelerate the payments of his $2018$

state income taxes $($State A has an individual income tax$)$ due April $15,2019,$ and

his local property taxes due January $15,2019,$ totaling $$310,000$ into December

Since Bob is a cash basis taxpayer, the error resulted in Bob paying

additional federal income taxes in $2018($if states taxes had been paid in $2018,$ Sponge could

have received a $39\mathrm{.}6$ tax benefit. Instead taxes were paid in $2019$ receiving only a $24\%$ benefit

for the deduction$).$ Sponge Bob claimed an itemized deduction in $2018$

and $2019.$

Upon discovering the error in December $2022,($tax return could not be amended at the time of

claim because of statute of limitation$)$ the parties negotiated a $$65,000.$ payment to Bob from

Bikini $($and its malpractice insurance company$)$ to compensate Bob for inadequate professional

advice. The payment was made to Bob in June of $2023.$

Question: Is the payment gross income and in what year must it be reported?