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receive a lump-sum payment from the NYSL or an enforceable
promise to pay a lump sum.1
The taxpayer in Sainte Claire Corp. v. Commissioner, supra,
owned a promissory note that was due on November 1, 1988. On
November 1, 1988, the taxpayer corporation and the borrower
negotiated an extension of the note to April 1, 1990. We held
that the taxpayer corporation constructively received the
principal owed on the promissory note when it became due on
November 1, 1988, because, on that date, the taxpayer had an
unrestricted right to receive the income, the taxpayer was able
to collect it, and the failure to receive it was due to the
taxpayer’s own choice. Sainte Claire Corp. is distinguishable
from this case because petitioner never had the right to receive
the 1996 lottery installment in 1989.
We conclude that petitioner did not constructively receive
his 1996 payment from the NYSL in 1989 and that the 1996 NYSL
payment is taxable in 1996.
1 Petitioner conceded in his reply brief that Cowden v.
Commissioner, T.C. Memo. 1961-229, and the cash equivalency and
economic benefit doctrines do not support his contention that he
received all of the lottery winnings in 1989.
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