- 2 - The sole issue is whether petitioner is entitled to exclude from gross income $5,000 paid to petitioner and Dartmouth College by the Globe Newspaper Co., the publisher of the Boston Globe (the Globe). The facts are undisputed and may be summarized as follows. When petitioner was in secondary school he delivered newspapers for the Globe. During that time the Globe had a "Paper Route to College" program in which petitioner participated. Under the program, if petitioner delivered the Globe for 3 years, the Globe would pay $5,000 toward petitioner's first-year tuition at an accredited college or university. Petitioner delivered the Globe for the years 1988, 1989, and 1990. Upon his graduation from secondary school in 1994, petitioner was accepted by, and enrolled at, Dartmouth College. On September 2, 1994, the Globe issued a check to petitioner and Dartmouth College in the amount of $5,000 that was applied toward petitioner's first year tuition. Petitioner did not include the $5,000 in gross income on his 1994 Federal income tax return. Upon examination, respondent determined that the $5,000 was includable in gross income and issued a notice of deficiency. Section 61(a) defines gross income to include "all income from whatever source derived". In view of the all inclusive language of section 61, exclusions from income are matters of legislative grace and are construed narrowly. Commissioner v.Page: Previous 1 2 3 4 Next
Last modified: May 25, 2011