Some Tax Problems of Students and Scholars

Abstract

This Article will deal with three areas of application of the Internal Revenue Code of 1954 which affect particularly the scholar, the scientist, and the advanced student preparing for an academic career: The tax treatment of educational and research expenses, of awards and prizes made in recognition of scholastic or scientific achievements, and of scholarships and fellowships. The group whose special tax problems are discussed here is numerically small and has little voice in the legislative process which produces our revenue laws. The relative scarcity of case law would also indicate that its members do not often have the financial resources necessary to litigate their tax problems and the deficiency amounts involved would normally be relatively small. The Treasury ought to be aware of both these factors in preparing its regulations and rulings.