The doctrine of _____ holds that an individual must pay taxes on benefits with monetary value when he/she receives them.

Question

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The doctrine of constructive receipt holds that an individual must pay taxes on benefits with monetary value when he/she receives them, even if they choose not to actually receive them yet. This means that if an employee is offered a bonus check but chooses not to cash it until the next year, they would still owe taxes on that income in the current year due to the doctrine of constructive receipt.

The Doctrine of _____ Holds That an Individual Must Pay