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an employer for the exclusive benefit of his employees to provide
such employees with educational assistance." Both Mr. Maranto
and Mr. Evans testified that Mr. Maranto was not an "employee" of
the Herkeios Group. Mr. Evans testified that Mr. Maranto had a
contractual relationship with the trust to provide certain
services. In addition, petitioners presented no evidence of any
written plan setting forth the Herkeios Group's educational
assistance program as required in section 127(b)(1). We,
therefore, sustain respondent's determination.
The next issue for decision is whether petitioners are
entitled to exclude from income $1,688.92 that they received from
the Herkeios Group in 1991 as reimbursement for health care
expenses. Petitioners contend that this amount is excludable from
income. We disagree.
Section 105(b) provides in certain cases for the exclusion
from gross income of amounts paid by an employer to an employee
as reimbursement for medical expenses incurred by the employee,
his spouse, or dependents. However, we have already found that
Mr. Maranto was not an employee of the Herkeios Group. Moreover,
section 6039D(a) requires employers who maintain a "specified
fringe benefit plan", to file a return each year listing certain
relevant information. A plan maintained pursuant to section 105
is a "specified fringe benefit plan". Sec. 6039D(d)(1).
Petitioners produced no evidence that the Herkeios Group filed
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