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?

Question

Quizplus · Accepted Answer

The Assignment of Income Doctrine states that income must be taxed to the person who earns it or who controls the earning of the income. In this scenario, although the taxpayer owns the property, she is assigning the right to collect the rental income to her son. Therefore, the rent checks should be reported as taxable income on the son's tax return, not the taxpayer's. This violates the Assignment of Income Doctrine. The constructive receipt doctrine would apply if the taxpayer instructs her son to not cash the rent checks until the following year to delay the tax liability. The implicit tax doctrine and step-transaction doctrine are not relevant to this scenario.

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