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stated that he deferred his yearend value added payment for 1994
to 1995. For tax purposes, petitioner has deferred the yearend
value added payments for each year since becoming a member of MCP
in the early 1980s.
Section 451(a) provides that the “amount of 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.”
Section 1.451-1(a), Income Tax Regs., provides, in relevant
part, that
Gains, profits, and income are to be included in gross
income for the taxable year in which they are actually or
constructively received by the taxpayer unless includible
for a different year in accordance with the taxpayer’s
method of accounting. * * * Under the cash receipts and
disbursements method of accounting, such an amount is
includible in gross income when actually or constructively
received.
Section 1.451-2(a), Income Tax Regs., provides that
income although not actually reduced to a taxpayer’s
possession is constructively received by him in the taxable
year during which it is credited to his account, set apart
for him, or otherwise made available so that he may draw
upon it at any time, or so that he could have drawn upon it
during the taxable year if notice of intention to withdraw
had been given. However, income is not constructively
received if the taxpayer’s control of its receipt is subject
to substantial limitations or restrictions.
We find a direct parallel to Warren v. United States, 613
F.2d 591 (5th Cir. 1980). The court held that the gins were the
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