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section 170(b)(1)(A)(ii). Section 170(b)(1)(A)(ii) defines an
educational organization as an organization that "normally
maintains a regular faculty and curriculum and normally has a
regularly enrolled body of pupils or students in attendance at
the place where its educational activities are regularly carried
on". Board certification is awarded by the American Board of
Internal Medicine (Board). As far as we know, the Board does not
maintain a curriculum, does not maintain a regular faculty, and
does not have a student body. The Board is not an educational
organization as defined by section 170(b)(1)(A)(ii).2
B. Qualified Tuition and Related Expenses
Section 117(b)(1) requires that qualified amounts be given
and used for tuition or tuition-related expenses. In
petitioner's case the funds were given for financial support, not
for tuition or related expenses. Indeed, it appears that
petitioner had no such expenses. The amounts received by
petitioner from the grant were not amounts received as a
qualified scholarship under section 117(b)(1).
C. Case Law
Despite the fact that petitioner fails to meet the statutory
requirements of section 117, petitioner insists that the amounts
he received are exempt under case law. Petitioners argue that
2 Petitioners also suggest that Johns Hopkins should be viewed
as the entity which provides the grant. Petitioner, however, was
clearly not a degree candidate at Johns Hopkins.
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Last modified: May 25, 2011