employee discounts

[nalawson]

Clients gives his employees discounts, gives employee's family discounts, and gives discounts to extended family members of employees (mom,dad,etc.) It is a service industry. Does any of this need to be added to employee's wages?

[solomon]

See §132(c) and (h).

[ChEAr$]

See §132(c) and (h).

Most all readers and posters here do not consult the regs and code very often, so
is that a yes or a no?

[solomon]

Most all readers and posters here do not consult the regs and code very often, so
is that a yes or a no?

Were I to say "NO" and the poster made no further inquiry, I most certainly would not want that person doing my taxes. If the TTB does not address that question explicitly, then I would suggest reviewing the cited Code.

[solomon]

Assuming it works, here is a link to §132:

http://www4.law.cornell.edu/uscode/26/usc_sec_26_00000132----000-.html

[BOB W]

Does this help????? Page 16

http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf

[nalawson]

Yes, I know that certain employee benefits are nontaxable, and I know there are some limits, but my client has 8 employees and gives over $25,000 so far this year in discounts and I was uncertain if extended family was something I needed to worry about because it seemed excessive. I have visited this board for a few years now and it is a wealth of information and am glad it is here. And I will still read posts in the future. But it is responses like this that really make me hesitate each time I post. I needed this info asap, I am out of my office, not near my TTB and I guess I was looking for some quick help. My bad.Refering to solomon.

[Gretel]

Sorry. Please don't let this refrain you from posting here, no matter what. As I said before, we all sometimes need more help than other times. We all have areas we don't know anything about or next to anything and just getting some kind of input from someone with experience in this area helps a lot.

[Kurly]

Friends of TTB

Remember all you posters. NOT ANY ONE OF US IS AS SMART AS ALL OF US TOGETHER

Thanks

Kurly

[Zee]

Yes, I know that certain employee benefits are nontaxable, and I know there are some limits, but my client has 8 employees and gives over $25,000 so far this year in discounts and I was uncertain if extended family was something I needed to worry about because it seemed excessive. I have visited this board for a few years now and it is a wealth of information and am glad it is here. And I will still read posts in the future. But it is responses like this that really make me hesitate each time I post. I needed this info asap, I am out of my office, not near my TTB and I guess I was looking for some quick help. My bad.Refering to solomon.

Solomon actually provides very good answers. But, I also found his answer far too harsh. For many of the returns prepared here, there are plenty of documents and publications available without directly researching the code. TTB isn't the only reliable source, although it's my favorite there are many others and other boards that are also very helpful. Most have references to the code, but further research is often unecessary.

There are many debates here about interpretation of the Pubs, IRS Rulings, and sometimes the code on what appear to be very "minor" issues or "immaterial" issues on the tax return being discussed. So, I don't have any question that most of the poster's here perform adequate due diligence on issues.

Solomon is obviously saying a "No" answer isn't sufficient and he's right. But, if he would have included an explanation of his understanding of the tax law it would have been a whole lot more polite and beneficial. Or, if one is too busy a link politely indicating the answer can be found at the attached link would be fine. Solomon, you need to "chill out" a little, the tax season isn't even here yet for most posters. Everyone here knows you're very knowledgeable, and a better researcher than most.