Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 57-19

1957-1 C.B. 33

Sec. 74

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Rev. Rul. 57-19

An award to be presented each year for a five-year period to an outstanding teacher of a college was established by a charitable foundation. The award is not in payment of any particular service which the teacher rendered to the college but is based upon a period of over-all past service to the academic work of the college ( i.e. , it is not conditioned on any future service thereto). The selection of the recipient of the award is made by a committee composed of students, alumni, and administrative officials of the college from a group of faculty names suggested by the senior class and alummi. None of the suggested persons know that they are being considered and none has done any special work specifically designed to win the award. Held the teacher award made in accordance with the established plan constitutes an award made primarily in recognition of educational achievement and is excludable from the gross income of the recipient as provided by section 74(b) of the Internal Revenue Code of 1954.