Sorry the weekends are the only time I get to spend quality time with my twins. I do want to respond to all the posts here but it will take me some time. I really like this discussion, and the input from everyone here. The issue I am having is the position being taken, is using citations and theory detached from the codified tax law. I need to support this under the code. For those who don't think the code applies to you, that is another debate. I will have that with you if you want, but for purposes here, lets presume we are all under the code.

I promise to address all questions, I just need time. I do have a life outside tax, and forum debate. Feel free to carry on discussing, I will get back.

Let's just say, If I can validate this approach, I can write an opinion, and can use that to support an audit, but it has to be grounded in current tax law with specific code sections regulation and cases cited. While I am happy to her discussion on private credit, and the like, it isn't really applicable in a position paper, unless specific tax codes embody this theory. I need to be able to use the code, regs and case law, to make a clear and compelling case for this position, and this is what i am struggling with, as I can't find an appropriate exemption in the tax law....

more to follow I promise, keep up the discussion, it is very interesting. I am also thankful some here finally understand why a refund check is not proof enough. If you want to take this position and your income in in excess of 250k, you need support, as taking this position with that much income will trigger an audit, no question.

I will also add, I do have access to ex-IRS agents as resources, and am talking to them about this, but nothing positive so far.