Many companies provide perks, such as free food, to employees in an effort to keep employees on the premise and happy. In fact, here in San Francisco and the Northern California area, companies are famous for employer provided benefits. Google has cafeterias with world famous chefs; many companies have fully stocked snack rooms that rival a 5 star hotel; and many provide a bounty of other benefits like gyms, yoga and more.
The IRS has been cracking down on these types of employer provided benefits to employees, also known as Fringe Benefits, via tax audits for years. Although they routinely audit small and mid-size businesses regarding benefits provided to employees, the IRS is now publicizing their efforts; they are getting the public’s attention by drawing attention to the type of benefits bigger and popular tech companies are providing (much like the strategy of targeting and prosecuting celebrities).
In our tax practice, we routinely defend small and mid-size businesses with respect to their employer provided employee benefit plans. Our knowledgeable tax attorneys at Moskowitz LLP have more than 30-years of experience representing clients with income tax audits and other tax issues. Our intimate knowledge of the Internal Revenue Code, tax procedure, and litigation in Court, combined with our tough approach toward the IRS, is placed at the disposal of all our valued clients. Do not hesitate to contact us with any tax issue; we want you to achieve the best possible results.