A taxpayer instructing her son to collect rent checks for the taxpayer's property and to report this as taxable income on the son's tax return violates which doctrine?
A)Constructive receipt doctrine
B)Implicit tax doctrine
C)Assignment of income doctrine
D)Step-transaction doctrine
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The instruction to have the son collect rent checks and report the income on his tax return violates the assignment of income doctrine, which states that the individual who earns the income must report it on their own tax return. By instructing the son to report the income, the taxpayer is trying to assign the income to someone else to lower their own tax liability.

A Taxpayer Instructing Her Son to Collect Rent Checks for the Taxpayer's