_____ 6.Constructive receipt requires an accrual basis taxpayer to recognize income when the taxpayer has an unrestricted right to a payment that is to be received.

Question

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Constructive receipt applies to cash basis taxpayers, not accrual basis taxpayers. Accrual basis taxpayers recognize income when it is earned, regardless of when it is received.

_____ 6Constructive Receipt Requires an Accrual Basis Taxpayer to Recognize Income