TAX 9863 Study Guide - Final Guide: Empty Rooms, Curium, Federal Reporter
Document Summary
Chapter 4 of casebook: employee benefits: exclusion for fringe benefits, casebook pp. Generally an employee is taxed on compensation whether the compensation is in the form of cash, property or services but there are various exclusions. Benefit other than salary/wages/ or other similar direct compensation provided in connection w/ performance of services. Some fringe benefits are excluded b/c difficult to quantify them or for policy reasons and some because its minimal cost to employer so why not let employees get benefit. So long as service is offered for sale to customers in the ordinary course in line of business of employer and the line of business in which employee is performing services and employer incurs no substantial additional cost. No, if there is someone else who could take the room then no. Suppose employer is a conglomerate and employee who asks for room doesn"t work in hotel business; let"s say works in shipping business.
