Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Wednesday, January 18, 2012

PLR 201152022 - Scholarships Not Taxable Expenditures

Unknown-3ORG asked for advance ruling that a scholarship program they wanted to implement was not considered taxable expenditures. ORG would publicize the program on a website and every applicant who meets the eligibility requirements would receive a scholarship. The program’s goal is to give students the resources to receive a college education and obtain their degree at the end.

In PLR 201152022, the IRS ruled that ORG’s scholarships do not constitute taxable expenditures because the program complies with the requirements of section 4945(g). The section broadly states that “grants awarded on an objective and nondiscriminatory basis, approved in advance are not taxable expenditures.”

PLR 201152022 – Scholarships Not Included In Gross Income of Recipients, Community Foundation of Louisville, Jan. 18, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing  (PLM, Inc.)) for bringing this article to my attention. 


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