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Are Meals Included in Gross Income?

2018 – 11/29 The IRS sheds light on meals provided for the convenience of an employer. An individual’s gross income generally includes compensation for services, including fringe benefits. An exception is the value of meals furnished by an employer, which are excludable if they’re furnished on the business premises for the employer’s convenience. The IRS Associate Chief Counsel issued Legal Advice 2018-004 stating that a previous test applied by the U.S. Supreme Court will continue to be relevant to determine whether there’s a business reason for furnishing meals to employees.

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