Bills Corporation runs a defense contracting business that requires security clearance. To prevent unauthorized access to its

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Bills Corporation runs a defense contracting business that requires security clearance. To prevent unauthorized access to its materials, Bills requires its security personnel to be on duty except for a 15-minute break every two hours. Since the nearest restaurants are a 25-minute round trip, Bills provides free lunches to its security personnel. Bills has never included the value of these meals in its employee's compensation. Bills is currently under audit, and the IRS agent wants to deny Bills a deduction for past meals. The agent also wants Bills to begin including the value of the meals in employee compensation starting with the current year. As Bills' tax advisor, give it a recommendation on whether to appeal the agent's decision (Hint: see Boyd Gaming Corp., CA-9, 99-1 USTC ¶50,530 (Acq.), 177 F3d 1096).
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Taxation Of Individuals And Business Entities 2015

ISBN: 9780077862367

6th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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