IRS Audits are now focusing on Executive Fringe Benefits. The purpose is to deny the deduction for the business and to include the expenses as income for the Executive. Areas scrutinized in the audits include:
- Athletic Skyboxes and Cultural Entertainment Suites Awards
- Bonuses Club Memberships
- Corporate Credit Cards
- Employee Discounts
- Paid Vacations
- Employer-Paid Parking
- Loans Executive Dining Room
- Relocation Costs
- Financial Planning
- Outplacement Services
- Chauffeurs
- Transportation/ Company Cars
- Spousal/ Dependent Travel
- Private Jet Use
- Transfer of Property (such as real estate, stock, computers, furniture and cell phones)
- Personal Use of “Listed” Property (such as computers, cell phones, and home office items)
see: http://www.TaxEsq.com
