I'm not sure where you are getting your information, but it seems like you are disagreeing with the Tax Code, which is the ultimate authority. I have clearly shown you what the Tax Code says, and some IRS Publications and Instructions that echo what the Tax Code says.
If there are tax preparers not including scholarship for the Kiddie Tax, or counting scholarships as if the son/daughter is paying their own support, they are clearing doing it illegally, against what the Tax Code clearly says.
