An employee can exclude from gross income the value of meals provided by his or her employer whenever:

Question

Quizplus · Accepted Answer

According to the IRS, employees can exclude the value of meals provided by their employer from their gross income when the meals are provided on the employer's premises for the convenience of the employer. This means that the employer must have a valid business reason for providing the meals, such as to ensure that employees can be available during working hours or to meet production deadlines. The meals cannot be extravagant, and there must be no other places to eat nearby. Note that choice D is incorrect, as it is the convenience of the employer, not the employee, that matters.

An Employee Can Exclude from Gross Income the Value of Meals