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Abstract

In Baxter v. Commissioner, the court decided whether taxpayer Baxter had constructively received $13,095 of commissions he had earned in 1978. Baxter, a cash basis taxpayer, received a check in the mail for these commissions in early 1979. The check was dated December 30, 1978. Treasury Regulation Section 1.451-2(a) controls and provides, in part, that a taxpayer constructively receives income when it is otherwise made available to draw upon at any time, even though it is not reduced to the taxpayer's possession. However, there is no constructive receipt if "taxpayer's control of its receipt is subject to substantial limitations or restrictions.

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