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Defenders of this IRS position would say it comes home to Section 61. The waitress provided a service for me, and I paid transfer pricing as it. Compensation for services is taxable. End of deal.

Some people receive an oversized fat refund every year because a good deal is being withheld their particular weekly or bi-weekly paychecks. It wasn't until a few back that an associate of mine came and asked me why I really could worry too much about the $275 tax refund I received.

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