- 23 -
arriving at gross income.9 We follow those decisions and treat
proceeds from the United Ready Mixed settlement, unreduced by
attorney’s fees, as gross income to petitioner. See Golsen v.
Commissioner, 54 T.C. 742, 756 (1970), affd. 445 F.2d 985 (10th
Cir. 1971).
Petitioner, however, argues that the funds should not be
included in his income until the restriction on his use of the
funds was lifted. Since petitioner had no use of or even access
to the settlement funds during 1992, he argues that the income
should not be recognized to him until distributed from his
attorney’s trust account beginning in 1993.
Section 451 requires income to be included in the taxpayer’s
gross income in the taxable year of receipt unless the taxpayer’s
accounting method would properly assign the income to a different
tax period. Sec. 451(a). Since petitioner is a cash method
taxpayer, income is taxable to him upon receipt.
9 Compare Sinyard v. Commissioner, 268 F.3d 756 (9th Cir.
2001), affg. T.C. Memo. 1998-364; Benci-Woodward v. Commissioner,
219 F.3d 941, 943 (9th Cir. 2000), affg. T.C. Memo. 1998-395;
Coady v. Commissioner, 213 F.3d 1187 (9th Cir. 2000), affg. T.C.
Memo. 1998-291; Brewer v. Commissioner, T.C. Memo. 1997-542,
affd. without published opinion 172 F.3d 875 (9th Cir. 1999);
Martinez v. Commissioner, T.C. Memo. 1997-126, affd. without
published opinion 83 AFTR 2d 99-362, 99-1 USTC par. 50,168 (9th
Cir. 1998), with Estate of Clarks v. United States, 202 F.3d 854
(6th Cir. 2000); Cotnam v. Commissioner, 263 F.2d 119 (5th Cir.
1959), revg. in part 28 T.C. 947 (1957). See also Kenseth v.
Commissioner, 114 T.C. 399 (2000), affd. 259 F.3d 881 (7th Cir.
2001); Freeman v. Commissioner, T.C. Memo. 2001-254; Banks v.
Commissioner, T.C. Memo. 2001-48.
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