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unless specifically excluded as a de minimis fringe benefit.11
The temporary regulations provide:
Thus, except as otherwise provided in this section, the
provision of any cash fringe benefit (or any fringe
benefit provided to an employee through the use of a
charge or credit card) is not excludable as a de
minimis fringe. For example, the provision of cash to
an employee for personal entertainment is not
excludable as a de minimis fringe. [Sec. 1.132-6T(c),
Temporary Income Tax Regs., supra.]
The allowance of a deduction for day trip allowances would
not undercut the strict substantiation requirements of section
274(d). Section 274 generally disallows certain entertainment,
gift, and travel expenses. In the case of allowances paid to
cover expenses incurred during travel, section 274 applies only
if the amount is otherwise deductible as a “travel” expense.
Thus, section 1.274-1, Income Tax Regs., provides that “If a
deduction is claimed for an expenditure for entertainment, gifts,
or travel, the taxpayer must first establish that it is otherwise
allowable as a deduction under chapter 1 of the Code before the
provisions of section 274 become applicable.”12 Since any meal
11Logic dictates that in order for meal money to be excluded
from gross income as a “de minimis fringe benefit”, meal money
provided to employees must be a “fringe benefit”.
12See sec. 1.274-5(e), Income Tax Regs. (the term “business
expenses” includes ordinary and necessary expenses for travel,
but does not include personal expenses, and advances,
reimbursements, or allowances for personal expenses must be
reported as income by the employee); sec. 1.274-5T(f)(1),
Temporary Income Tax Regs., 50 Fed. Reg. 46027-46028 (Nov. 6,
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