Keith R. and Christine M. Vogt - Page 6

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          child, the California legislature clearly drafted IHSS                      
          legislation to allow compensation to a parent who leaves full-              
          time employment to care for his disabled minor child.  Cal. Fam.            
          Code sec. 3900 (West 2004); Cal. Welf. & Inst. Code sec. 12300(e)           
          (West Supp. 2005).2  Therefore, IHSS payments received for the              
          care of a minor child are not distinguishable under California              
          law from IHSS payments received for the care of an adult child.             
               Petitioners contend that their 1991 Federal income tax                 
          return was examined by the IRS, and they were allowed an                    
          exclusion of the IHSS payment from gross income.  They have                 
          relied on this audit by the IRS to exclude IHSS payments from               
          gross income on their Federal income tax returns for all                    
          subsequent years.                                                           
               The Court is satisfied that petitioners, in the past, have             
          made good faith efforts to determine whether the subject IHSS               
          payments constituted gross income.  For at least 1 year, 1991,              
          petitioners were allowed the exclusion of these payments from               


               2Cal. Welf. & Inst. Code sec. 12300(e) (West Supp. 2005)               
          reads, in part:                                                             
                 Where supportive services are provided by a person                   
                 having the legal duty pursuant to the Family Code                    
                 to provide for the care of his or her child who is                   
                 the recipient, the provider of supportive services                   
                 shall receive remuneration for the services only                     
                 when the provider leaves full-time employment or                     
                 is prevented from obtaining full-time employment                     
                 because no other suitable provider is available                      
                 and where the inability of the provider to provide                   
                 supportive services may result in inappropriate                      
                 placement or inadequate care.                                        




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