The employees of Mauve Accounting Services are permitted to use the copy machine for personal purposes, provided the privilege is not abused.Ed is the president of a civic organization and uses the copier to make several copies of the organization's agenda for its meetings.The copies made during the year would have cost $150 at a local office supply.

Question

Quizplus · Accepted Answer

According to IRS regulations, the personal use of a copy machine by an employee is considered a de minimis fringe benefit if the cost is minimal, the use is occasional, and it does not create accounting or administrative burdens. In this case, the cost of the copies made by Ed is only $150, which is minimal, and he is using it only for a civic organization, which meets the occasional use requirement. Therefore, Ed may exclude the cost of the copies as a de minimis fringe benefit.

The Employees of Mauve Accounting Services Are Permitted to Use