Colleagues:

Joe's employer (a corporation) provided him with tuition reimbursements.  (I assume that the employer has an Education Assistance Plan, but it isn't clear.)  He is leaving the company, triggering a repayment obligation.  The employer has offered to forgive the repayment obligation as part of the negotiation of certain workplace disputes.  Employee is worried that the forgiven debt will be taxable income.  It seems that it would be under 61(a)(12) and 108(f) says student loan forgiveness is not taxable, but that section doesn't help him because the payment wasn't issued by a qualified entity.

Does anyone know how this should be treated?

Thanks.

Micah