Law schools that were concerned their students might have to pay taxes on loans that are forgiven received some reassurance from the Internal Revenue Service last month that students don’t have to claim the erased loans as income.
In an IRS revenue ruling, the agency clarified that the privilege of not claiming the erased loans as income doesn’t apply only to students who go into the nursing, medical and teaching professions, as suggested by a 2006 tax court opinion, but rather also includes the legal profession.
