96-157
Response October 30, 1996
Request
September 25, 1996
Mr. RH Hansen, Chairman
Utah State Tax Commission
Heber M. Wells Bldg.
160 East Third South
Salt Lake City, UT 84134
Dear Mr. Hansen:
For use in the XXXXX MANAGEMENT GUIDE and STATE TAX
REPORTERS, we would appreciate your help with the following matter.
As you know, the federal income tax exclusion for
employer-provided educational assistance plans has been reinstated
retroactively to January 1, 1995 and is scheduled to expire on June 1,
1997. In addition the exclusion does
not apply to graduate level courses.
Does your state follow the federal treatment of such
payments in determining wages subject to state income tax withholding? If not, what is your state's current
withholding treatment regarding such payments?
As a result of the law change, the IRS has set up an
expedited refund procedure. Has your
state set up any similar refund procedure or should employers and employees use
the regular refund methods?
Thank you in advance for your help in our reporting.
Very truly yours,
XXXXX
XXXXX
Advisory opinion - Educational assistance plans
Dear XXXXX
We have
received your request for information pertaining to Utah’s treatment of
employer-provided educational assistance plans. Utah follows the federal treatment of such payments in
determining wages subject to state income tax withholding. We have no special refund procedure for
these claims. Individuals may file
amended returns to claim the refund.
Please
note that W. Val Oveson is the current chairman of the commission. Please update your resource files. Let us know if you have additional
questions.
For
the Commission,
Joe
B. Pacheco,
Commissioner