Apparently it’s okay to run a business and have fun and express passion doing it. You don’t have to hate every waking second of what you’re doing to make a living – even if you’re not making a profit. We reported last summer on the dangerous prospect of a lawsuit against Smile ‘Til It Hurts: The Up With People Story director Lee Storey which attempt to prove that documentaries are for education and not entertainment. That distinction would change their IRS tax status and mean that documentary filmmakers who never get their work distribution or make money (read: many of them) would not be able to write off the production costs as a deduction. All of that sounds ridiculous (and way too dry and boring to start thinking about) but the implications were clear: documentary filmmaking would be severely injured by the ruling. Fortunately, it’s time to celebrate because Variety is reporting that the IRS just lost their lawsuit against Storey. Our long national nightmare is finally over.

In 2009, Lee Storey made the documentary Smile ‘Til It Hurts: The Up With People Story after finding out that her husband had been involved with the 1960s musical/ethical group. It played at Slamdance and several other festivals. Last March, US Tax Court Judge Diane Kroupa researched the film and its production with an eye to rule on whether or not Storey owes thousands in back taxes and penalties. The reason? Kroupa is determining whether making a documentary is a hobby or not. If she finds that it is, it could have a profound effect on documentary filmmaking.