Background

Big Hospital Company, Inc. is a hospital which is located in a big city. Since it is the only hospital within the city, the hospital is always busy. Due to the fact that people may come into the hospital at any given time, doctors and nurses on duty are provided a meal from the cafeteria located within the hospital. In the evening when the cafeteria is closed the medical staff is provided a free meal from a local restaurant which delivers the food to them at no cost. Sue Smith who is in HR at Big Hospital Company, Inc. has contacted you to see whether the food that is provided to the employees should be included as part of their income.

Write a memo to Ms. Sue Smith explaining your findings.

Your Responsibility

Prepare a tax research memo addressing the question that has been raised.

You will need to support your conclusion using primary sources of tax law. Your textbook is NOT primary authority.

You must use proper citation form in your memo (see Chapter 2 for help with citation form). The form for this communication should be professional and in the form of a tax research memo. Do yourself a favor and look at the grading rubric before you submit.

This memo should be whatever length you feel is appropriate to resolve the issues. We do NOT use a bibliography or list of references in a tax research memo. You will see that citations are within the text of the document in the example. Once a court case has been cited in full, it can be referred to using simply the name in italics.

You are required to individually prepare this document.