IRS AM: ‘Convenience of Employer’ Test for Business Meal Exclusion Reviewed (IRC §119)

A review of employers not including in income the value of meals provided forced the IRS to inquire into the current rules for applying the convenience of the employer test. In determining whether meals are furnished for the convenience of the employer and thus excludible from income under tax code Section 119, the Supreme Court ruling in Kowalski v. Commissioner (holding that the “convenience of the employer” means that the carrying out of the employee’s duties in compliance with employer policies for that employee’s position must require that the employer provide the employee meals in order for the employee to ...