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 these.

Question

Quizplus · Accepted Answer

The constructive receipt doctrine requires that income be recognized in the tax year in which it is available, rather than when it is actually received. This means that if an individual or business could have received the income in the current year but chooses not to, such as by delaying the cashing of a check or postponing the receipt of payment, the income will still be taxable in the current year. The doctrine applies to both cash and accrual basis taxpayers.

The Constructive Receipt Doctrine