Abstract The article presents a report of the Committee on Tax Information Service of the American Accounting Association as of October 1973, which aimed to help faculty members and school administrators with regards to the benefits of tax planning. There is reason to believe that much of the financial support of study and research by faculties of universities and colleges could be freed from taxes and that this result is not being accomplished to a sufficient extent at the present time. It is preferable that scholarship and fellowship grants be received from an organization other than the employing educational institution where there could be any question concerning the compensatory nature of payments received by the grantee. Administrative rulings have helped to define further the situations in which awards received by professors may be excluded. Exclusion was permitted where a teacher received an award in recognition of past overall services to a college and seniors and alumni without the winner's knowledge made the nomination.
A 1973 study studied this question.