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448(a)(1). However, section 448(b)(3) provides an exception for
C corporations with gross receipts of less than $5,000,000.
The record does not establish whether petitioner is a cash
basis or an accrual basis taxpayer. Berry, petitioner's
president and sole shareholder, was not asked about the matter.
While petitioner characterizes the issue as whether or not
petitioner was an accrual basis taxpayer, it seems to be simply a
matter of constructive receipt of income. Berry testified that
he deposited the corporation's checks in the bank and that in his
view the funds were not available to his corporation until he
made such deposits. If, prior to August 1, Berry had in his
possession checks in payment of work performed by the corporation
prior to August 1, the fact that he did not deposit such checks
into the bank account until early August would be irrelevant.
The income would have been constructively received by the
corporation prior to August 1 whether petitioner was a cash basis
or an accrual basis taxpayer.
We hold that petitioner has not established that respondent
erred in shifting the gross receipts of $88,181 from its taxable
year ended July 31, 1991, to its taxable year ended July 31,
1990. Indeed, as will be discussed below, petitioner has in
effect stipulated to this adjustment.
b. Any August 1989 Bank Deposits to be Shifted
from FYE 7-31-90 to FYE 7-31-89
While no issue was raised in the petition as to the $88,181
August 1990 bank deposits, petitioner did assign as error
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