Slapping the Hand at the Dinner Table

A Practical Tax Solution to Employer-Provided Meal Benefits

The U.S. Department of Treasury (“DOT”) placed employer-provided meals with 316 other priorities in its Priority Guidance Plan, thereby indicating its intent to possibly require employers and/or employees to pay taxes on this favorite fringe benefit. Congressional concerns of noncompliance, economic inefficiency via burden shifting, and inequity among taxpayers have influenced this development. Statutory rules, not new IRS regulations, emphasizing the potential tax incentives can be created that both balance these concerns and still address employer and employee interests. This Note will address problems with and the development of employer-provided meals as well as using illustrations such as Googleplex to demonstrate that a satisfactory compromise is possible.

The full text of this Note is available to download as a PDF.