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Jobin - 12:24 pm on Oct 17, 2009 (gmt 0)
If the IRS person knew what Adsense was about they would realise they were wrong. What if you did not have adsense or any sort of paid advertising on your website would you receive income? NO.
sailorjwd
"IRS immediately comes to the conclusion that we are getting paid for the content that we created (and therefore not passive). That's the gray area since it can be argued that we are not getting paid for the content, we are getting paid for the advertisements."