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Section 108(f) for further guidance of the intent of
that section, it states:
In order to ensure the professional participation
in public service activities, many educational
organizations sponsor programs which offer stu-
dents an opportunity to be discharged (partially
or completely) from their student loans, by work-
ing for a period of time in a public serviced
organization. (CCH--Standard Federal Tax Reports
� 7002, * * *)
Both Internal Revenue Code Section 108(f) and the LARP
award an individual for working in a public service
organization in lieu of working in the private sector.
* * * the language of the Section [108(f)] must be
examined for guidance. It says “In general....gross
income does not include....any amount....if such dis-
charge was pursuant to a provision of such loan...”
(IRC Section 108(f)). The use of the phrase “in gen-
eral” in and of itself implies that the rule is the
general rule but not exhaustive of all situation to
which 108(f) can apply. The language allows for pro-
grams, such as the Janet L. Hoffman LARP, to fall
within the Code Section without the Section requiring
rewriting. Nowhere in Code Section 108(f) does the
language state that the discharged amount must be
pursuant to a provision in the loan (emphasis added).
Due to the fact that the language purposefully is
not exact, allowing for other possible programs, pro-
grams which may not have been in existence when the
Code Section was drafted coupled with the CCH Explana-
tion and requirements of the Janet L. Hoffman LARP, it
is Petitioner’s position that the award received
through the LARP should be treated as a discharge of
indebtedness and therefore non taxable income. The
very spirit of 108(f) is to ensure that professionals
participate in public service employment rather than
working in the private sector. This is advanced by the
Janet L. Hoffman Loan Assistance Program’s award of
money, which is directly applied to Petitioner’s enor-
mous student loan debt. Although Petitioner certainly
received a benefit by receiving the award, so too the
State of Maryland benefits by ensuring professional
participation in public service activities such as
working for the State’s Attorney’s Office. The lan-
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Last modified: May 25, 2011