• Review what special fringe benefits
that the IRS consider non-taxable benefits
C corporation stockholders who are also employees generally are entitled to the same tax-free fringe benefits
as other employees.
Employer payments or reimbursements for job-related educational expenses also can be excluded from the employee's income as a working condition fringe benefit
. Job-related qualifying education is education that (1) is required by an employer or the law to keep a present salary, status, or job; or (2) maintains or improves skills required for present work (Regs.
* If they are doing prevailing wage work today, "How are you discharging your fringe benefit
obligations?" It's that simple.
* Partners must then report as taxable income the value of all fringe benefits
(other than qualified plans) provided for them by the partnership.
On October 6, 1995, American Airlines filed suit in the Court of Federal Claims seeking a refund based on the contention that the voucher program qualified as a de minimis fringe benefit
within the meaning of IRC section 132(a)(4).
Although the term "fringe benefit
" may not have been used prior to the 1940s, the taxation of perquisites became a very visible issue in the early years of the modern income tax on the administrative front (27) and in the courts.
Observation: This Chief Counsel Advice rationale also may apply to other situations where an S corporation provides taxable, properly valued fringe benefits
Similarly, inequality in the distribution of fringe benefits
has also been studied.
* A selective fringe benefit
. The employer is not required to include all employees in this program.
Yet there was one key fringe benefit
where, because it related directly and beneficially to money income and improved status, little disagreement should have been evident.
accumulate and a return to the previous job or equivalent is guaranteed.
A fringe benefit
provided in connection with the performance of services is treated as compensation for the services.
The employer also failed to pay employees the fringe benefits
required by the SCA, and failed to maintain records of the hours employees worked, a violation of the FLSA.
The report also calls out public universities and community colleges statewide for providing "excessive fringe benefits
" and lucrative exit deals for top administrators, including a $480,418 severance package to the former Illinois State University president after less than a year on the job.