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In part since it's a taxable benefit to the employee, absent extenuating circumstances. Not all employees want to "pay" for "free" food.

https://taxnews.ey.com/news/2019-0493-employer-must-substant...



Does this really get reported to the IRS in practice? Most companies provide free coffee and I've never seen that reported to the IRS either.


Snacks have always been okay...from that link--

"Snacks

The TAM separately considers whether the value of snacks provided to employees is excludable from income under Section 119. Rather than revisit the business reasons previously analyzed, the TAM relies on Tougher v. Commissioner, 441 F.2d 1148 (9th Cir. 1971), to determine that the snacks are not meals. Accordingly, a snack cannot be a meal furnished for the convenience of the employer. Nevertheless, the TAM does conclude that the value of the snacks is excludable from employee income as de minimis fringe benefits under Section 132(e)(1)."




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