Constructive receipt

Constructive receipt is a tax term mandating that an individual or business must pay taxes on income despite the fact that it has not been physically received.

An individual is considered to be in constructive receipt of income when they have the ability to control or utilize the funds, even if they do not have direct possession of them, or if it is guaranteed they will have the ability to draw upon the funds in the future—Read more at Investopedia. Kenton, Will. “Constructive Receipt.” 10 October 2019.