Melissa L. Moloney - Page 12

                                       - 11 -                                         
               We now address petitioner’s argument that section 108(f)(1)            
          sets forth a general rule that is “not exhaustive of all                    
          situation[s] to which [section] 108(f) can apply.”  As petitioner           
          correctly points out, section 108(f)(1) sets forth a general rule           
          that excludes from gross income any income from the discharge of            
          a student loan, but that general rule applies only if the                   
          requirements of that section are satisfied.  Only Congress may              
          provide exceptions to the general rule that it prescribed in                
          section 108(f)(1).  Congress did so in section 108(f)(3) entitled           
          “Exception For Discharges On Account Of Services Performed For              
          Certain Lenders.”  Section 108(f)(3) precludes the application of           
          the general rule of section 108(f)(1) (i.e., precludes the                  
          exclusion from gross income of any income from the discharge of a           
          student loan that otherwise meets the requirements of section               
          108(f)(1)) if such discharge of a student loan made by an                   
          organization described in section 108(f)(2)(D) was on account of            
          services performed for such organization.                                   
               We turn finally to petitioner’s argument that the Court                
          should be guided by not only the letter but also the spirit of              
          section 108(f)(1).  The Court must follow the law as written by             

          discharged if the individual worked for a certain period of time            
          in certain professions for any of a broad class of employers.”              
          Sec. 108(f)(1).  The term “certain professions” to which sec.               
          108(f)(1) applies are medicine, nursing, and teaching.  Porten v.           
          Commissioner, T.C. Memo. 1993-73 n.1 (citing Staff of Joint Comm.           
          on Taxation, General Explanation of the Revenue Provisions of The           
          Deficit Reduction Act of 1984 at 1999(J. Comm. Print 1984)).                

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

Last modified: May 25, 2011