IRS Logo
Print - Click this link to Print this page

ITG FAQ #5 Answer-What is the economic benefit doctrine?

Under the economic benefit doctrine, a taxpayer using the cash receipts and disbursements method of accounting must include in gross income currently any financial or economic benefit derived from the absolute right to receive property in the future that has been irrevocably set aside for the taxpayer in a trust or fund.

Return to List of FAQs

Page Last Reviewed or Updated: 02-Aug-2016