- 7 -- 7 - petitioner meets the criteria for exemption established by Bieberdorf v. Commissioner, 60 T.C. 114 (1973), and Bailey v. Commissioner, 60 T.C. 447 (1973). The facts in both Bieberdorf and Bailey are analogous to those of the present case. In Bieberdorf the taxpayer was a medical doctor who received a grant from NIH for research in gastroenterology. In Bailey the taxpayer was a medical doctor who received a grant from NIH as part of a training program in cardiorenal research. In both cases, the amount of time spent in activities for the benefit of the hospital was deemed de minimis compared to the amount of time spent in research and training related to the grants, and we held that the taxpayers qualified for exemption under the pre-1986 section 117. We may agree that petitioner meets the requirements of Bieberdorf and Bailey. The problem is that these cases were decided under different statutory provisions. By the 1986 amendments, Congress adopted a different statutory scheme requiring that the funds must be used by degree candidates for qualified tuition and related expenses. Our holdings in Bieberdorf and Bailey are not germane to the provisions of section 117 that apply here. Consequently, Bieberdorf and Bailey are not reliable precedent. As a final matter, petitioner urges us to look beyond the text of the statute and, as a public policy matter, allow the grant to be exempt. It is for Congress to resolve tensionPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011