Respondents include employers who maintain education assistance programs for their employees. The information verifies that programs are qualified and that employees may exclude educational assistance from their gross incomes. Section 127(a) of the Internal Revenue Code provides that the gross income of any employee does not include amounts paid or expenses incurred by an employer if furnished to the employee pursuant to a qualified educational assistance program. Section 127(b) sets forth the requirements which must be met in order for a program to be a qualified educational assistance program. Among these requirements, section 127(b)(1) requires that a program be a separate written plan of the employer. Treas. Reg. section 1.127 2(b) restates this requirement. No advance approval of the plan is required. Employees must be notified of the availability and terms of the program. Section 127(b)(6) and Treas. Reg. section 1.127 2(g). Pursuant to section 6001, substantiation may be required to verify that employees are entitled to exclude the value of such benefits from their gross incomes.
US Code:
26 USC 127
Name of Law: Educational assistance programs.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
2018-09-11_SS_1545-0768rLV.doc
Employers Qualified Educational Assistance Programs (TD 7898)