21 April 2012 4:00 PM, PDT | Filmmaker Magazine - Blog | See recent Filmmaker Magazine news »

Independent documentary filmmaker Lee Storey has won her long battle with the Internal Revenue Service over deductions related to her film, Smile ’til it Hurts: The Up with People Story. The IRS’s case against Storey panicked the documentary community as it was poised to declare documentary filmmaking itself “a hobby” and not a professional, profit-seeking endeavor eligible for tax deductions. However, the same judge, Tax Court Judge Diane L. Kroupa, who said during a hearing, “By its very nature, a documentary to me means that it’s not for profit. You’re doing it to educate. You’re doing it to expose,” has now ruled for Storey and against the IRS, who had seeked over a quarter of a million dollars in back taxes from the director.

The ruling is reported by Forbes this morning. From Janet Novack’s piece:

In her 46-page decision, Kroupa not only accepted documentary filmmaking as a legitimate business, »

- Scott Macaulay

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