Keith R. and Christine M. Vogt - Page 5

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          IHSS payments were income but, after conferring with petitioners,           
          concluded that the IHSS payments were not considered gross                  
               In this case, respondent cites Bannon v. Commissioner, 99              
          T.C. 59 (1992), as controlling.  In Bannon, which involved                  
          circumstances very similar to those in the present case, in which           
          a taxpayer gave her child round-the-clock total daily care, in              
          excess of the hours listed on the taxpayer’s biweekly timecard              
          and paid for by the IHSS, the Court analyzed the law in detail              
          and stated, id. at 66:                                                      
                 Petitioner’s situation is sympathetic.  She is to                    
                 be lauded for the beneficence and compassion she                     
                 has shown to her disabled daughter.  But we                          
                 cannot grant petitioner the relief she seeks.  *                     
                 * *  We hold that petitioner’s receipt of                            
                 payments under California’s in-home supportive                       
                 services program did not constitute a welfare                        
                 benefit to her and is therefore includable in her                    
                 income for Federal income tax purposes.                              
               Although the Court has only previously addressed the                   
          classification of IHSS payments as they apply to adult children,            
          California law makes no distinction between adult children and              
          minor children for purposes of IHSS payments.  See Miller v.                
          Woods, 148 Cal. App. 3d 862 (1983).  Live-in relatives, whether             
          caring for minor or adult children, receive the same level of               
          compensation from IHSS as nonrelated contract workers.  Id. at              
          877.  Furthermore, although parents of a minor child are required           
          by California law to volunteer their services to care for that              

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