Chris Alan Roberts - Page 3

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               During August 1997, while petitioner was still admitted in              
          the Center, a $19,893.904 distribution check was received from               
          the Plan at petitioner’s Hawthorne residence.  The distribution              
          was received in the form of a cashier’s check.                               
               On November 13, 1997, petitioner was released from the                  
          Center and concurrently reconfined in the Los Angeles county jail            
          to serve the remainder of his sentence.  Petitioner was released             
          from jail in February 1998 and during May of that year he cashed             
          the $19,893.90 distribution check.  Petitioner did not report the            
          distribution as income on his 1997 Federal income tax return.                
               The question we consider is whether petitioner                          
          constructively received the $24,867.37 distribution during his               
          1997 tax year.  Section 451(a) provides the general rule that                
          “any item of gross income shall be included in the gross income              
          for the taxable year in which received by the taxpayer, unless,              
          under the method of accounting used in computing taxable income,             
          such amount is to be properly accounted for as of a different                
          period.”  Petitioner, who reports his income using the cash                  
          method, must report income in the year it is actually or                     
          constructively received.  See sec. 1.451-1(a), Income Tax Regs.              

               4 Respondent determined that the gross distribution of                  
          $24,867.37 was unreported income.  The net distribution, after               
          withholding $4,973.47 for Federal tax, was $19,893.90.                       

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