Melissa L. Moloney - Page 9

                                        - 8 -                                         
               guage of the Internal Revenue Code Section 108(f) is                   
               general to provide a template from which to make deci-                 
               sions thus allowing for programs, such as the Janet L.                 
               Hoffman LARP to be governed by it.  Both the letter of                 
               the law and the spirit of the law is served by making                  
               the award money received non taxable, thus allowing                    
               professionals to serve the public and still be able to                 
               pay their debt.  [Reproduced literally.]                               
               Respondent counters petitioner’s argument under section                
          108(f) as follows:                                                          
               Her [petitioner’s] argument glosses over the fact that                 
               the award is not a discharge of indebtedness.  Even if                 
               the award were considered to be a discharge of indebt-                 
               edness, it would not be excludible from income under                   
               I.R.C. � 108(f) under the plain language of the stat-                  
               ute.  Petitioner attempts to avoid the language of the                 
               statute by arguing that the intent of the award falls                  
               within the intent behind the law. * * *  She fails to                  
               recognize that this reading of I.R.C. � 108(f) is                      
               without foundation.                                                    
               We turn first to section 108(f) on which petitioner relies.            
          That section provides:                                                      
               SEC. 108. INCOME FROM DISCHARGE OF INDEBTEDNESS.                       
                 *       *       *       *       *       *       *                    
               (f) Student Loans.--                                                   
                    (1) In General.-–In the case of an individual,                    
               gross income does not include any amount which (but for                
               this subsection) would be includible in gross income by                
               reason of the discharge (in whole or in part) of any                   
               student loan if such discharge was pursuant to a provi-                
               sion of such loan under which all or part of the in-                   
               debtedness of the individual would be discharged if the                
               individual worked for a certain period of time in                      
               certain professions for any of a broad class of employ-                
                    (2) Student Loan.-–For purposes of this subsec-                   
               tion, the term “student loan” means any loan to an                     
               individual to assist the individual in attending an                    
               educational organization described in section                          
               170(b)(1)(A)(ii) made by–-                                             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011