Posted on 09/05/2014 7:00:18 AM PDT by SoFloFreeper
When I was contemplating where I might want to practice after law school, I was struck by the description of one particular firm in Philadelphia with a thriving tax practice. A former partner warned me off, explaining that they brought lunch to your desk. After years of scratching together my own lunch, I thought that sounded pretty great so I asked what was so terrible about having your lunch brought to you.
“They do it,” she said simply, “Because they don’t want you to leave.”
....On August 26, 2014, the Department of Treasury released the 2014-2015 Priority Guidance Plan (downloads as a pdf) which raised the issue of employer-provided meals as one of 317 projects that are priorities for the upcoming year. The plan “represents projects we intend to work on actively during the plan year.”
In other words: the IRS is rethinking looking the other way when it comes to free meals. While the plan did not focus on how IRS specifically plans to evaluate the issue – nor did it establish any timeline – it’s likely that the agency will shift resources to consider how and whether to force companies to include “free” meals as compensation for employees.
(Excerpt) Read more at forbes.com ...
The cost of compliance with this rule is easily more than the cost of the meal. So what they are really doing is telling companies you cannot provide meals to your employees. Not for Christmas parties, team events, or to reward them for working lunches.
So my son travels. He gets a 30 meal reimbursment. So he pays for his meal with his post tax dollars and gets TAXED on the reimbursement?
“It is a ‘benefit’ to the employee.”
Yes and we wouldn’t want companies doing anything to benefit their employees. Only the government is allowed to do that.
“Yes and we wouldn’t want companies doing anything to benefit their employees. Only the government is allowed to do that”
?
The IRS is going after revenue like a pack of starving weasels.
Food is a great way to benefit employees. The amount of taxes generated will be negligible but the cost of tracking it will mean many companies will reduce or eliminate the practice.
By the same logic, an employee working an eight hour shift ought to be able to have the cost for a business meal count as a necessary expense to keep the human machine operating. If (s)he is working a 12 hour shift or more, then at least two meals.
Yes, it is an absolute mess, no matter how the government tries to slice it up. I can foresee it happening, tho...
Congress has the right to reign them in with legislation if they had the guts to do so.
It’ll get worse as the economic demise of the USA gets more and more imminent.
Au contraire, mon ami.
Health care is a right, not a benefit. Don't you remember ANYTHING from Obamacare 101?
not me..
“By the same logic, an employee working an eight hour shift ought to be able to have the cost for a business meal count as a necessary expense to keep the human machine operating. If (s)he is working a 12 hour shift or more, then at least two meals. “
You miss the point. It is a business expense that is deductible by the business. At the same time it is a benefit to the employee and benefits are taxable.
You are onto something there. A lot of these fast food workers get a daily food allowance in addition to their hourly pay. Start taxing that and they’re really going to start feeling the pinch.
By your logic, any butt-wipe you use while taking a dump at work is also a benefit and should be taxable. Ditto for tampons, coffee, plastic forks and even the office supplies provided by the employer. Where does it end?
Whew, for a minute I was worried but I checked and I have two right nuts.
:-)
Then the really significant question for you is, do you have two left nuts, too!
If so, the girls will be swarming around...
Unfortunately it isn't free. And someone has to pay. Someone always pays.
The feds and Democrats are probably drooling at the prospect of a huge windfall when they start taxing health insurance.
Of course, voters have to be stupid not to realize that it will affect them directly. But they will continue to foolishly vote for Democrats and wonder, whine, and complain when their taxes jump.
And we all would have a lot less if Democrats have their way i.e. a carbon tax.
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