Rev. Rul. 60-280

Revenue Ruling 57-60, C.B. 1957-1, 25, holds, in part, that where payments are made by a school board to a parent or other person not engaged in the business of transporting children to school, for transporting children where bus service is not available, the money considered as reimbursement for the recipient's personal expenses and is not includible in his gross income for Federal income tax purposes. The exclusion is based on the fact that the reimbursement is for an expense incurred on behalf of the school board which was obligated to furnish transportation to the school children. Since the statement in the ruling that the money is considered as reimbursement for the recipient's personal expenses is subject to an erroneous interpretation that a reimbursement of personal expenses generally does not result in taxable income, Revenue Ruling 57-60 is hereby modified by deleting therefrom the words `is considered as reimbursement for the recipient's personal expenses and.'