Income is Taxable, Not Deductible

[LPC]

The IRS has released the text of a response to a very strange question from a Congressional constituent:

UIL: 162.00-00
Release Date: 3/25/2011
Date: February 28, 2011

Refer Reply To: CONEX-104500-11

The Honorable Robert Menendez
United States Senator
One Gateway Center, 11th Floor
Newark, New Jersey 07102

Attention: * * *

Dear Senator Menendez:

I am responding to a letter dated January 24, 2011, from your constituent, * * *. In the letter, she asked whether she may deduct compensation she receives for services she renders as a nurse under section 162 of the Internal Revenue Code.

Section 162 permits a taxpayer to deduct all ordinary and necessary business expenses the taxpayer pays during the taxable year. The salary or other compensation that * * * receives for rendering personal services is income, not an expense she pays. Because the compensation * * * receives for her personal services is not an expense, she may not deduct the compensation under section 162 of the Internal Revenue Code.

The compensation that * * * receives for rendering nursing services is taxable income under section 61 of the Internal Revenue Code, unless excludible under another statutory provision. We are not aware of any applicable exclusion provision.

I hope this information is helpful. If you have any questions, please contact me or * * * at * * *.

Sincerely,

George J. Blaine
Associate Chief Counsel
(Income Tax & Accounting)

[Famspear]

....Because the compensation * * * receives for her personal services is not an expense, she may not deduct the compensation under section 162 of the Internal Revenue Code....

I wonder if the taxpayer in question, to be consistent with what appears to be her theory, has been trying to treat the expenses she pays as "income" on her tax returns........

[JamesVincent]

Is it possible that the constituent's native tongue is not English? That might make a big difference in their comprehension of tax issues.

Its funny you should say that. A lot of nurses and nursing assistants showing up the past few years in nursing homes/ assisted living homes are Kenyan. And by a lot I mean Ive seen some homes with almost nothing but Kenyan employees and when me and my ex ere still together the homes she worked in were slowly growing into all Kenyans.

[grixit]

Did you take there word that they were kenyans? Or did you demand excruciatingly detailed proof that they weren't born in Hawaii?