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services or represents payment for services which are subject to
the direction or supervision of the grantor." Nor do they
include amounts paid to "an individual to enable him to pursue
studies or research primarily for the benefit of the grantor."
Sec. 1.117-4(c)(1) and (2), Income Tax Regs. The Supreme Court
has upheld the validity of these regulations, stating that the
definitions contained therein comport with "the ordinary
understanding of 'scholarships' and "fellowships' as relatively
disinterested, 'no strings' educational grants, with no
requirement of any substantial quid pro quo from the recipients."
Bingler v. Johnson, 394 U.S. 741, 751 (1969).
There is nothing in this record to persuade us that the
payments in issue were anything other than payments for services
and we so hold.
The University requires students employed as graduate
assistants and associates to register for at least six units of
graduate credit per semester as a condition of their
appointments. Petitioner paid $508 tuition per semester, for two
semesters, to the University in 1992, to register as a graduate
student. Petitioner seeks to deduct his total $1,016 tuition
payment as a "condition of employment as a graduate associate"
pursuant to either section 161 or section 212.
The Arizona Board of Regents Policies provides at page 25:
B. Graduate research assistants and associates are
full-time graduate students, selected for excellence in
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Last modified: May 25, 2011