Page:United States Statutes at Large Volume 98 Part 3.djvu/804

 98 STAT. 3176

PUBLIC LAW 98-611—OCT. 31, 1984

Public Law 98-611 98th Congress An Act Oct 31 1984 ' [H.R. 2568]

'^^ amend the Internal Revenue Code of 1954 to extend for 2 years the exclusion from gross income with respect to educational assistance programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. AMENDMENTS RELATING TO EDUCATIONAL ASSISTANCE PROGRAMS. 26 USC 127.

(a) 2-YEAR EXTENSION OF EXCLUSION FROM GROSS INCOME.—Sub-

section (d) of section 127 of the Internal Revenue Code of 1954 (relating to educational assistance programs) is amended by striking out "December 31, 1983" and inserting in lieu thereof "December 31, 1985". (b) ANNUAL EXCLUSION LIMITED TO $5,000.—Subsection (a) of section 127 of such Code is amended to read as follows: "(a) EXCLUSION FROM GROSS INCOME.—

"(1) IN GENERAL.—Gross income of an employee does not include amounts paid or expenses incurred by the employer for educational assistance to the employee if the assistance is furnished pursuant to a program which is described in subsection (b). "(2) $5,000 MAXIMUM EXCLUSION.—If, but for this paragraph, this section would exclude from gross income more than $5,000 of educational assistance furnished to an individual during a calendar year, this section shall apply only to the first $5,000 of such assistance so furnished." (c) SPECIAL RULE FOR CERTAIN GRADUATE STUDENTS.—Subsection

i4n^e, p. 887.

(c) of section 127 of such Code is amended by adding at the end thereof the following paragraph: "(8) COORDINATION WITH SECTION ii7(d).—In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(l)(A)(ii) and who is engaged in teaching or research activities for such organization, section 117(d)(2) shall be applied as if it did not contain the phrase '(below the graduate level)'." (d) REPORTING AND RECORDKEEPING REQUIREMENTS.—

(1) IN GENERAL.—Subpart A of part III of subchapter A of chapter 61 of such Code is amended by inserting after section 6039C the following new section: 26 USC 6039D.

"SEC. 6039D. RETURNS AND RECORDS WITH RESPECT TO CERTAIN FRINGE BENEFIT PLANS.

"(a) IN GENERAL.—Every employer maintaining a specified fringe benefit plan during any year beginning after December 31, 1984, for any portion of which the applicable exclusion applies, shall file a return (at such time and in such manner as the Secretary shall by regulations prescribe) with respect to such plan showing for such year—

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