IRS TAM: Employer Provided Meals, Not Snacks, Includible in Employee Wages (IRC §119)

The IRS evaluated whether meals and snacks that Taxpayer provided to employees at its headquarters was includible in employees’ wages. Taxpayer provided meals without charge, to all employees, contractors and visitors without distinction as to the employee’s position, specific job duties, ongoing responsibilities, or other external circumstances. Taxpayer also provided unlimited snacks and drinks in designated snack areas that were available to employees, contractors and escorted guests. The value of meals Taxpayer provided to its employees was includible in the employees’ wages because Taxpayer failed to show that the meals were provided for the convenience of the employer under tax ...