- 15 - The day trip allowances were compensation in the form of fringe benefits.9 Section 61(a)(1) provides that gross income includes “Compensation for services, including fees, commissions, fringe benefits, and similar items”. (Emphasis added.) As applicable for the years 1985 through 1988, section 1.61- 2T(a)(3), Temporary Income Tax Regs., 50 Fed. Reg. 52286 (Dec. 23, 1985), provides that “A fringe benefit provided in connection with the performance of services shall be considered to have been provided as compensation for services.” (Emphasis added.) The regulations applicable to the years in issue recognize that employer-provided meals or meal allowances are taxable fringe benefits unless specifically excluded from income under section 132.10 Section 1.132-6T, Temporary Income Tax Regs., 50 Fed. Reg. 52308 (Dec. 23, 1985), recognizes that meals or meal allowances to employees (for meals not otherwise deductible under section 162(a)(2)) are generally considered to be taxable income 9The Court of Federal Claims and the Court of Appeals for the Federal Circuit considered similar per diem allowances within the framework of fringe benefits. Am. Airlines, Inc. v. United States, 40 Fed. Cl. at 722; Am. Airlines, Inc. v. United States, 204 F.3d at 1110. 10For the years in issue, sec. 132 excluded the following fringe benefits from gross income: (1) No-additional-cost service; (2) qualified employee discount; (3) working condition fringe; and (4) de minimis fringe.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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