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unfettered right to withdraw it. Each insurance policy
listed three types of options as to the payment of
dividends earned. Petitioner elected the same type of
option with respect to each policy and the class of
option so chosen provided that he could leave the
dividends on deposit with the companies to earn inter-
est at a fixed rate per annum. The options provided in
addition that the accumulations of dividends and inter-
est earned thereon were “withdrawable in cash on de-
mand” by the insured. See sec. 1.61-7(d), as amended,
Income Tax Regs.
These factors lead us to the conclusion that the
interest so credited to petitioner’s account from the
date of purchase of the policies to, but not including,
1958 was constructively received by him during each of
the years in which he owned the policies * * *. [Fn.
ref. omitted.]
Cohen v. Commissioner, supra at 1063-1064.
We conclude that our holding and our rationale underlying
that holding in Cohen v. Commissioner, supra, are controlling in
the instant case.9 On the record before us, we find that the
$191.45 of 2003 interest on Prudential policy dividend accumula-
tions that Prudential showed in petitioner’s 2003 Prudential Form
1099-INT and the $435.87 of 2003 interest on USAA policy dividend
accumulations that USAA showed in petitioner’s 2003 USAA Form
1099-INT are includible in petitioner’s gross income for her
taxable year 2003. We conclude that respondent is entitled as a
matter of law to summary adjudication on the issue of whether
such interest is so includible. We shall, sua sponte, grant
9Respondent agrees that Cohen v. Commissioner, supra,
controls the resolution of whether the interest at issue here is
includible in petitioner’s gross income.
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