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receive payment of money that is available to him. Furstenberg
v. Commissioner, 83 T.C. 755, 792-793 (1984); Basila v.
Commissioner, 36 T.C. 111, 115-116 (1961) (citing Gullett v.
Commissioner, 31 B.T.A. 1067, 1069 (1935)).
Ordinarily a check constitutes income to a cash basis
taxpayer when he receives it. See Walter v. United States, 148
F.3d 1027, 1029 (8th Cir. 1998); Estate of Kamm v. Commissioner,
349 F.2d 953, 955 (3d Cir. 1965), affg. T.C. Memo. 1963-344;
Kahler v. Commissioner, 18 T.C. 31 (1952). However, if a check
is received subject to a substantial limitation or restriction,
the check does not constitute income to a cash basis taxpayer.
See Fischer v. Commissioner, 14 T.C. 792, 802 (1950); Bones v.
Commissioner, 4 T.C. 415, 420 (1944); sec. 1.451-2(a), Income Tax
Regs. In Bones, we held that where cashing a check would impair
a taxpayer’s legal position by creating a situation that might be
construed as an accord and satisfaction concerning a disputed
claim, the taxpayer’s refusal to cash the check did not result in
constructive receipt. Id. at 420.
The question of what constitutes an accord and satisfaction
is not easily decided, and it is not essential to the disposition
of this case to make any definitive holding as to whether cashing
the check would have created an accord and satisfaction. See id.
Rather, the focus is on the reasonableness of petitioners’
decision not to cash the check in light of the governing law
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