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Defenders for this IRS position would say it returns to Section 61. The waitress provided a service for me, and I paid for it. Compensation for services is taxable. End of story.

Aside off of the obvious, rich people can't simply ask tax credit card debt relief based on incapacity shell out. IRS won't believe them at everyone. They can't also declare bankruptcy without merit, to lie about it would mean jail for these businesses. By doing this, it might be led for investigation and ultimately a kontol case.

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