TAXABILITY OF EDUCATION ALLOWANCES AND VALUE OF QUARTERS PROVIDED TO CONTRACTOR EMPLOYEES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00310R000100480003-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: December 2, 2002
• Sequence Number: 3
• Publication Date: October 26, 1970
• Content Type: MF

Approved For Release 2003/02/27 7-00310R0W100480003-2
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Taxability of Ed=ucation Allowances
and Value of Luarters Provided
to Contractor Employees
In accordance with our agreement with
there is nothing to be lost in requesting a ruling. The
allowance question is clear and does not Justify a request
enue ruling. However, if the contractor corporations feet
Revenue Service officials. In my opinion the answer to the
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ched these questions and discussed thews with
to the question of taxability of the value of quarters is less
cer , and I think, in the interest of the contractor employees, a
formal request for a Revenue ruling should be made by each of the
contractor corporations. Attached is my draft of a suggested ruling
request. The corporations may awDdlfy it if they wish, but I strongly
suggest that if they do, they consult us first and I also suggest that
each company submit an identical request=
schools in re not adequate. The
allowance is essentially the same as that provided by statutes for
Government employees but is limited to a maximum of $2, 000 per
year, The allowance for Government employees is specifically
exempt from taxation by statute. There is no pr?rision in the
Internal Revenue Code or regulations for the exemption of such
allowances provided by private companies to their employees.
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a ir. i rtsoc3e told us that~ta giving an education
ance for secondary education to its employees an the grounds
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