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Rep. Dunn Asks Treasury to Investigate Problem With Education Credits

NOV. 7, 1997

Rep. Dunn Asks Treasury to Investigate Problem With Education Credits

DATED NOV. 7, 1997
DOCUMENT ATTRIBUTES
  • Authors
    Dunn, Rep. Jennifer
  • Institutional Authors
    U.S. House of Representatives
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    education, tax incentives
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 97-32270 (2 pages)
  • Tax Analysts Electronic Citation
    97 TNT 233-25
====== SUMMARY ======

Rep. Jennifer Dunn, R-Wash., has asked Treasury to investigate a problem one of her constituents has with the Hope Scholarship and Lifetime Learning credits. According to Richard A. Rutkowski of Green River Community College, Auburn, Wash., students in Washington community and technical colleges will not be able to apply the credit to their 1998 winter quarter tuition and fees because the colleges require them to pay their 1998 winter quarter expenses in 1997. To correct the problem, he suggests allowing payments made in 1997 to qualify for the credit when they are for 1998 tuition and expenses.

====== FULL TEXT ======

November 7, 1997

The Honorable Robert E. Rubin

 

Secretary

 

Department of The Treasury

 

1500 Pennsylvania Avenue N.W.

 

Room 3330

 

Washington, DC 20220

Dear Secretary Rubin:

[1] I am writing on behalf of Mr. Richard A. Rutkowski, President of Green River Community College, regarding the Hope Scholarship and Lifetime Learning Credits.

[2] According to Mr. Rutkowski, he is concerned about when the Hope Scholarship will be available to his students. Mr. Rutkowski recently learned that this scholarship is not available to Community College students in Washington State for the Winter quarter because they are required to pay for their classes in December 1997. Therefore, these students will not be able to apply this scholarship to their 1998 taxes and will lose the benefit. Please review the new law and provide me with information on what can be done to allow these students to take advantage of these funds. Your attention to this situation is appreciated.

[3] If you have any questions, please contact Debbie Davis in my district office at (425) 450-0161.

Jennifer Dunn

 

Member of Congress

Enclosure

* * * * *

November 7, 1997

The Honorable Jennifer Dunn

 

U.S. House of Representatives

 

Nine Lake Bellevue Drive

 

Bellevue, WA 98005

Dear Representative Dunn:

[4] The HOPE Scholarship Tax Credit becomes effective January 1, 1998. A $1500 credit will be allowed to students and parents of students during their first two years of higher education.

[5] There is a problem with the HOPE program that applies only to the first year of its operation. In Washington State, community and technical college students are required to pay tuition and fees prior to the start of the quarter. In fact, most of our 160,000 students statewide will pay for winter quarter 1998 tuition and fees in 1997. Some of these students will be precluded from the Hope Scholarship benefit by virtue of this timing problem. The Internal Revenue Service, in its ruling 97-60, states that only payments made in 1998 qualify for the HOPE credit.

[6] A possible solution to the problem could come in the form of an IRS interpretation that would allow 1997 payments to qualify for the credit when those payments are made for 1998 tuition and fees. My request to you is to secure such a determination on behalf of students not only in Washington State but across the entire country. Such a determination will allow the HOPE program to serve precisely those individuals which it was intended to serve.

[7] Thank you for your help in this matter. If you need any further information, please do not hesitate to contact me. I may be reached at (253) 288-3340.

Sincerely,

Richard A. Rutkowski

 

President

 

Green River Community College

 

Auburn, Washington
DOCUMENT ATTRIBUTES
  • Authors
    Dunn, Rep. Jennifer
  • Institutional Authors
    U.S. House of Representatives
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    education, tax incentives
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 97-32270 (2 pages)
  • Tax Analysts Electronic Citation
    97 TNT 233-25
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