The IRS says no free lunch for Google - News and Current Events | futures io social day trading
futures io futures trading

The IRS says no free lunch for Google
Updated: Views / Replies:144 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

The IRS says no free lunch for Google

  #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,884 since Nov 2010
Thanks: 3,303 given, 3,334 received

The IRS says no free lunch for Google

Be careful when you grab that office bagel. The Internal Revenue Service may be watching.

The U.S. tax agency is taking a closer look at a popular tax-exempt perk offered by companies such as Google Inc.: free meals.

“There’s really potentially a lot of tax revenue involved,” said Lawrence Zelenak, a tax law professor at Duke University in Durham, North Carolina. “It sounds like you’re being inherently trivial, but I think this is not.”

The rules may address the unusual legal question of whether employees at the Googleplex in Mountain View, California, are more like New York office workers who can duck out for lunch or akin to lumberjacks in a remote logging camp who need to have food trucked in.

Technology companies that use their well-stocked cafeterias as a lure for prospective employees and a way to keep them on campus for longer hours have been challenged by the IRS in recent years, said Marianna Dyson, a tax lawyer at Miller & Chevalier in Washington. She represents some of the companies whose meal policies are being reviewed.

“The IRS has been particularly active on the West Coast with respect to any perks,” she said. “They’re trying to tamp this down. I think they see there’s been a lot of freewheeling delivery of this benefit in these fast-moving workplaces.”

Employer ‘Convenience’

Under U.S. tax law, workers don’t have to pay income or payroll taxes on meals they are provided “for the convenience of the employer.”

The IRS publication on the issue says companies can qualify if employees can’t “otherwise eat proper meals within a reasonable period of time.” It cites the example of a bank teller who has a short lunch break to accommodate the peak traffic period.

Another provision of the U.S. tax code lets companies set up cafeterias to serve those employees and then deduct the full cost of the meals, not just the 50 percent limit that typically applies to business meals.

The IRS has been conducting intensive employment-tax audits over the past several years as it looks for ways to combat tax avoidance.

Dyson said the cafeterias serve the companies’ interests by keeping people at work.

“They don’t want their people leaving, particularly if they have to get in cars and go find a place,” she said. “They’re gone longer. They lose time. They lose the opportunity to be in a setting where they’re talking together.”

Treasury Priorities

The Treasury Department included the issue in its list of administrative priorities for the year that started July 1. It included no deadline for completion and no detail on the content of the rules.

The project is in its preliminary stages, Erin Donar, a spokeswoman for the Treasury Department, said in an e-mailed statement.

“The application of tax rules to employer-provided meals in various contexts is an area in which additional guidance may provide useful clarity for employers,” she said.

Mark Hanson, an IRS spokesman, declined to comment. The Wall Street Journal first reported the increased IRS interest in the issue.

Technology Companies

Free meals are common as a perk at technology companies with campuses in California. Jim Prosser, a spokesman for Twitter Inc., had no comment. Tim Drinan, a spokesman for Google, declined to comment. Vanessa Chan, a spokeswoman for Facebook Inc., said the company has no comment.

Bloomberg LP, the parent of Bloomberg News, operates pantries at its offices that often feature fresh fruit, breakfast cereal and bagels. Ty Trippet, a spokesman for Bloomberg LP, declined to comment on how the company treats the food for tax purposes.

One IRS definition of meals includes a specific sugary, caffeinated exemption for “coffee, doughnuts or soft drinks.”

Beyond that, the lawyers may have to fight it out all the way to court, one baked good at a time.

For example, Dyson said she’s had the IRS tell her that a bagel is more like a meal than a snack.

“The IRS’s view of ‘meal’ may not be the classic example of the food chart that you and I are thinking of,” she said. “They’re going to interpret a meal liberally.”

If the IRS declares meals as taxable, companies have a few options, including selling the meals at cost to employees and giving them taxable raises to make them whole, said Sam Brunson, a tax law professor at Loyola University in Chicago. Zelenak said the meals most at risk of a changed tax treatment are breakfasts and dinners at either end of the workday. The midday meal at a secluded tech campus is on more solid legal ground, he said, though it could be vulnerable.

“The other thing I’d like to see them address is the bag lunch question,” he said. “Why can’t people just bring a bag lunch?”

The IRS says no free lunch for Google

Reply With Quote


futures io > > > > The IRS says no free lunch for Google

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Wyckoff Hunting for Great Risk/Reward Ratio w/Gary Fullett

Elite only

Digging into the Details of iSystems w/Stage 5 & iSystems

Jun 5

Similar Threads
Thread Thread Starter Forum Replies Last Post
Cowboy & IRS kbit Jokes 0 February 28th, 2014 09:28 PM
How Google+ killed Google's company-wide privacy effort ab456 Off-Topic 0 August 19th, 2013 12:33 PM
It's lunch time!! arnie Traders Hideout 7 August 3rd, 2012 01:47 PM
During an IRS audit..... kbit Jokes 0 November 6th, 2011 06:25 PM
IRS Wash Sales Rule monpere Stocks and ETFs Trading 4 December 4th, 2010 03:24 PM

All times are GMT -4. The time now is 01:59 PM.

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-05-24 in 0.08 seconds with 19 queries on phoenix via your IP