Treatment of direct compensation for tax purposes and eligibility for Federal financial assistance

Nothing in this Act, or an amendment made by this Act, shall— (1) cause any type of direct compensation described in section 2(3) of the National Labor Relations Act (29 U.S.C. 152(3)) that was not previously treated as income for which a tax may be imposed under the Internal Revenue Code of 1986 to become a type of direct compensation for which such a tax may be imposed; (2) cause any individual to be treated as an employee, or cause any amounts received by an individual to be treated as wages, for purposes of any provision in the Internal Revenue Code of 1986 relating to employment taxes or the withholding of taxes by an employer if such individual or amounts would not otherwise be so treated; (3) affect the treatment of qualified scholarships under section 117 of the Internal Revenue Code of 1986; or (4) otherwise affect the treatment of any direct compensation described in such section 2(3) in determining income, including gross income or adjusted gross income, for purposes of— (A) the Internal Revenue Code of 1986, including any reporting requirements under such Code; or (B) determining eligibility for any form of Federal financial assistance, including assistance under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).