IRS Proposes Standards Shift for Tax-Advantaged Fringe Benefits

The IRS wants to replace Reagan-era standards for determining an employer’s line of businesses when calculating tax-free fringe benefits.

The North American Industry Classification System would replace the older Enterprise Standard Industrial Classification Manual under a proposed IRS rule issued Tuesday.

The NAICS, jointly managed by the Canadian, Mexican, and US governments, is regularly updated and has already replaced industry monitoring standards used by most federal agencies.

Many current industries are unaccounted for under the ESIC Manual, according to the IRS.

Lines of business are important to employers who offer their employees tax-advantaged employee discounts, because the workers who receive ...