IRS looking into whether free meals at Silicon Valley firms should be taxable

[Newsjock]

Source: San Jose Mercury News

For thousands of Bay Area techies blessed to be working for benevolent behemoths like Google (GOOG) and Facebook, there could be an end to the free lunch. And the free shuttle to work. And maybe even the free haircut.

As firms pile on benefits to attract and retain the brightest of the bright, it has increasingly been part of the job description of Silicon Valley tech workers that they be pampered nearly to death with perks. But now the IRS is reportedly examining whether free food -- and the other free perks -- provided by Silicon Valley tech companies qualifies as a fringe benefit on which employees should pay additional tax.

And that set off a great grumbling that could be heard from San Jose to San Francisco.

Read more: http://www.mercurynews.com/business/ci_22982220/irs-is-looking-into-whether-free-meals-at

[Travis_0004]

1. Sounds like a waste of time to me

The IRS specifically has De minimis rules in place to simply the tax code. And the rules on employee meals are already in place. I think they should just leave it be. Maybe next they will consider the employee coffee to be a taxable benefit. Every time I want a cup I can scan my employee ID card, and they can list it on my W2 as non cash compensation at the end of the year.

I wonder if this is nothing more than a quest to get more tax revenue.

[Trillo]

2. free food to help "retain the brightest of the bright"

Why isn't this standard for all employers? Particularly for low wage employers?

Kids should have free food in schools.

[WinkyDink]

3. That is ridiculous! Tax EMPLOYEES for UNASKED-FOR perks?!