35 Miss. Admin. Code Pt. III, Subpt. 2, Ch. 01 — Constructive Receipt of Income

100 Income which is credited to the account of, or set apart, for a taxpayer and which may be
used by the taxpayer at any time is subject to tax for the year during which the income is
credited or set apart, even though the taxpayer does not have direct possession. To
constitute receipt, the income must be credited or set apart to the taxpayer without any
substantial limitation or restriction as to the time or the manner of payment or condition
upon which payment is to be made, and must be made available to be drawn at any time,
and its receipts brought within the taxpayer's control and disposition.
101 If interest coupons have matured and are payable, but have not been cashed, such interest,
though not collected when due and payable, shall be included in gross income for the year
during which the coupons mature, unless it can be shown that there are no funds available
for payment of interest during such year. The interest shall be included in gross income
even though the coupons are exchanged for other property instead of eventually being
cashed. The amount of defaulted coupons is income for the year in which paid.
102 Dividends on corporate stock are subject to tax when unqualifiedly made subject to the
demand of the shareholder. If a dividend is declared payable on December 31, and the
corporation mailed the checks so that the shareholder would not receive them until January
of the following year, the dividends are not considered to have been subject to the demand
of the shareholders prior to January, when the checks were actually received.
103 Interest credited on saving bank deposits is income to the depositor when credited. An
amount credited to shareholders of a building and loan association, when such credit passes
without restriction to the shareholder, has a taxable status as income for the year of the
credit. If the shares are restricted by a maturity date, the amount credited will be income to
the recipient when the shares mature, providing they are not available for withdrawal prior
to maturity.
104 In the case of a taxpayer reporting income on a cash basis, there should be included in gross
income only actual and constructive receipts of income. Taxpayers reporting on the accrual
basis must include in gross income amounts received by them or accrued to them.
105 (Reserved)
35.III.2.01 revised effective June 15, 2019