AMEND V. COMMISSIONER 13 T.C. 178 (1949) CASE BRIEF

AMEND V. COMMISSIONER

13 T.C. 178 (1949)

NATURE OF THE CASE: This was a dispute over the doctrine of constructive receipt for payment of the sale of wheat. Amend (P), wheat farmer, sought review of the decision by Commissioner (D) for deficiencies in P's tax return based on the doctrine of constructive receipt.

FACTS: P produced and harvested wheat in 1944. P sold the wheat to Burrus for payment in January 1945 at $1.57 per bushel with immediate delivery. It was understood that P would ship at once and Burrus would pay for it in January. The contract was carried out and the wheat shipped in August and paid for by a check dated January 17, 1945. Testimony at trial was that Burrus was under the usual custom of paying for the wheat on delivery and that the transaction with P was unusual. Both P and Burrus understood the contract to be for immediate delivery and for payment in January 1945. There was no controversy as to the amounts of monies or for the determination of gross income. The Commissioner applied the doctrine of constructive receipt under Reg. 111. That rule provides for taxation of income received that is under the will and control of the taxpayer and except for action or inaction by the taxpayer could be reduced to actual possession (Loose). P appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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