The constructive receipt doctrine:
A) is particularly restrictive for accrual basis taxpayers.
B) causes income to be recognized before it is actually received.
C) causes income to be recognized after it is actually received.
D) applies equally to income and expenses.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The constructive receipt doctrine dictates that income must be recognized when it is made available to the taxpayer, even if it has not been physically received. This can occur when income is credited to the taxpayer's account, when a check is available for pick-up, or when income is otherwise made available to the taxpayer. As a result, income can be recognized before it is actually received, which makes choice B the correct answer.

The Constructive Receipt Doctrine