- 11 - and lodging she received. The value of meals furnished to an employee by his employer shall be excluded from the employee’s gross income if (1) the meals are furnished on the business premises of the employer, and (2) the meals are furnished for the convenience of the employer. Sec. 119(a). If an employer provides meals to an employee without charge as a means of providing additional compensation to the employee (and not for a substantial noncompensatory business reason of the employer), the meals are not regarded as furnished for the convenience of the employer, and the value of the meals is included in the employee’s gross income. Sec. 1.119- 1(a)(2)(i), Income Tax Regs. Here, petitioner was furnished meals as compensation for services that she provided. The meals petitioner received were not additional compensation; the meals were part of her total compensation. The meals provided to petitioner were not for a substantial noncompensatory business reason of her employer. Accordingly, the meals furnished to petitioner were not for the convenience of Mr. Dixon, and the value of the meals may not be excluded from gross income pursuant to section 119(a). The value of lodging furnished to an employee by his employer shall be excluded from the employee’s gross income if (1) the lodging is furnished on the business premises of the employer, (2) the lodging is furnished for the convenience of thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011