David Sebberson and Patti A. Sebberson v. Commissioner of Internal Revenue

McMILLAN, District Judge:

David and Patti Sebberson appeal from a decision of the United States Tax Court (Tannenwald, Chief Judge) that certain funds paid to them by the University of Maryland were not excludable income under section 117 of the Internal Revenue Code. 26 U.S.C. § 117. They excluded from their joint 1978 federal income tax return, as non-taxable scholarships, portions of the stipends paid to them as teaching assistants in the English Department of the University of Maryland. The Internal Revenue Service disallowed the exclusion and assessed a deficiency against them. The United…