Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-18-2008, 03:47 PM
Junior Member
 
Join Date: Mar 2008
Posts: 3
What "Fringe Benefits" are permitted by the IRS?

Wow! Folks, this is a terrific site!

I heard some Fringe Benefits are not taxed to the employee. Can you provide me with some of the Non-Taxable Fringe Benefit Plans that are permitable by the IRS?

I am trying to understand this concept and see what works for my C-Corporation. Any assistance on this subject matter would be most appreciated!

Thanks...



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-20-2008, 03:32 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,413
Blog Entries: 3
What "Fringe Benefits" are permitted by the IRS?

What are Fringe Benefits?
Fringe Benefits are plans that are offered by employers or corporations that provide for a tax deduction for an employer and tax-free benefits to it employees. Thus, these plans when structured properly will provide an attractive way to provide tax-free benefits to its employees whilst at the same time provide a tax deduction to the corporations.

There are a lot of special rules that the IRS has established that apply to highly compensated employers, key employees and owner-employees. Clearly, these rules are an attempt to prevent potential abuse of Fringe benefits plans by corporations.

The general rule regarding Fringe Benefits are that they are all taxable to the employees unless specially excluded by the IRS code section. Currently, the IRS code has specially excluded some Fringe Benefits from being taxable to employees and these are as follows;

1. Group Term Life Insurance.
This has been explained in detail under Code Section 79.

2. Medical Insurance Plans.
This has been explained in detail under Code Section 106.

3. Cafeteria Plans.
This has been explained in detail under Code Section 125
.
4. Adoption Benefits.
This has been explained in detail under Code Section 137

5. Dependent Care Assistance.
This has been explained in detail under Code Section 129.

6. Educational Assistance Programs.
This has been explained in detail under Code Section 127.

7. Meals and Lodging Benefits.

This has been explained in detail under Code Section 119.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What are "Carry-Over Items" and why are they so important to the 2007 Tax Filing? TaxGuru Miscellaneous 0 03-10-2008 06:44 PM
How much of "Medical Expenses" can a Taxpayer deduct on their Tax Returns? TaxGuru Medical 2 02-28-2008 12:41 AM
What are the AGI limits that result in "Phaseout of Exemptions" in 2007? TaxGuru General 0 01-13-2008 04:29 PM
IRS rules that "Certain Payments to Disabled Veterans Ruled Tax-Free" TaxGuru Income 0 12-29-2007 02:29 PM
What are IRS "Section 179 Depreciation limits for 2007"? SusanB Depreciation 2 11-29-2007 03:17 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning