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Defenders of your IRS position would say it returns to Section 61. The waitress provided a service for me, and I paid get rid of. Compensation for services is taxable. End of transfer pricing post.

Congress finally acted on New Year's Day, passing the "fiscal cliff" law. This law extended the existing tax rate structure for single taxpayers with taxable income of lower than USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For together with higher incomes, the top tax rate was increased to 13.6% These limits are determined before a foreign earned income difference.

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