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of payment, (2) the contractual due date, or (3) the taxpayer’s
performance. See Schlude v. Commissioner, 372 U.S. 128, 133, 137
(1963); Cox v. Commissioner, 43 T.C. 448, 456-457 (1965). An
accrual basis taxpayer must report income in the year the right
to such income accrues, despite the necessity for mathematical
computations or ministerial acts. Continental Tie & Lumber Co.
v. United States, 286 U.S. 290, 295-297 (1932); Dally v.
Commissioner, 227 F.2d 724 (9th Cir. 1955), affg. 20 T.C. 894
(1953); Resale Mobile Homes, Inc. v. Commissioner, 91 T.C. 1085,
1095 (1988), affd. 965 F.2d 818 (10th Cir. 1992). Moreover, the
fact that a taxpayer cannot presently compel payment of the money
is not controlling. Commissioner v. Hansen, 360 U.S. 446, 464
(1959).
Petitioner argues that its commission is earned when
delivery of the securities and payment of the purchase price
occur, which is not until the settlement date. According to
petitioner, the acts that it performs between the trade date and
the settlement date are not merely ministerial. Rather, they are
integral parts of the service for which it is paid a commission,
and they represent a substantial percentage of the total discount
brokerage services provided. Respondent, on the other hand,
argues that execution of an order on behalf of a customer is the
essential service that petitioner performs and is the time at
which petitioner’s right to receive, and the customer’s
obligation to pay, the commission arises. According to
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