The constructive receipt doctrine:
A) is particularly restrictive for accrual basis taxpayers
B) causes income to be recognized before it is actually received
C) causes income to be recognized after it is actually received
D) applies equally to income and expenses
E) None of these

Question

Quizplus · Accepted Answer

The constructive receipt doctrine requires individuals to recognize income in the tax year in which it is accessible, even if it is not actually received until a later year. This applies to both cash and accrual basis taxpayers, but accrual basis taxpayers may face more restrictions with regard to timing of income recognition. Therefore, option B is the correct answer.

The Constructive Receipt Doctrine