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Schleier, 515 U.S. 323, 328 (1995); Mostowy v. United States, 966
F.2d 668, 671 (Fed. Cir. 1992). A taxpayer seeking an exclusion
from income must be able to point to an applicable statute and
show that he comes within its terms.
Petitioner originally contended that section 117 excluded
the Globe payment from income. Section 117(a) excludes from
income "any amount received as a qualified scholarship". As
petitioner now recognizes, however, section 117 does not apply to
any amount "which represents payment for * * * services by the
student". Sec. 117(c). There is no question that petitioner and
the Globe understood that the $5,000 was contingent on
petitioner's rendering services. Therefore, as petitioner
recognizes, section 117 is inapplicable here.
Petitioner also contends that the payment was an award and
exempt from gross income under section 74(b). To understand this
argument, we turn first to section 74(a) which provides that, as
a general rule, "gross income includes amounts received as prizes
and awards." Section 74(b), however, provides an exception to
the general rule in certain circumstances where the award is
transferred to a charitable institution. While we have no doubt
that Dartmouth College is a qualified institution, we seriously
question whether Congress intended for this provision to include
"transfers" in payment of tuition. Furthermore, section 74(b)
applies to "amounts received * * * primarily in recognition of
religious, charitable, scientific, educational, artistic,
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