Articles

Understanding and Applying IRS Regulations Regarding Employer-Provided Transportation for Security Concerns

John, the executive of XYZ Corporation receives a $150,000 tax bill in the mail.  He has been receiving security services from XYZ Corporation. The IRS audited his taxes and found that he had not paid taxes for those security services for the last several years.  If the executive is receiving these security services and never pays out of his own pocket, can the IRS impute the value of those services as gross income to the executive? Yes, the IRS can tax the executive based on the value of the services he is receiving. Imagine if you will an executive using years of security service and then finding out that he will have to pay taxes based on the value of the security services he received. Continue reading this article