[1] Petitioners, a husband and wife, were farmers who had contracted to sell an amount of wheat to a purchaser in August 1944.

Petitioners, who used the cash method of accounting, reported gains on the sale of wheat in 1945, when the money was received.

The tax commissioner, however, determined that petitioners had an unqualified right to payment as of the delivery of the wheat in August 1944, and should be considered to have realized gains on the sale in the year 1944.

This doctrine holds that a taxpayer is subject to tax in the year that he or she gains unfettered control of when items of income will or should be paid.

[1] The court found that the doctrine of constructive receipt was inappropriate because the contract governing the sale of the wheat was a bona fide, arm's length transaction and petitioners did not have any contractual or practical ability to take control of the payment until 1945.