Internal Revenue Code Section 132(a)

Internal Revenue Code Section 132(a)

Internal Revenue Code Section 132(a) provides eight types of fringe benefits that are excluded from gross income. These include fringe benefits which qualify as a (1) no-additional-cost service, (2) qualified employee discount, (3) working condition fringe, (4) de minimis fringe, (5) qualified transportation fringe, (6) qualified moving expense reimbursement, (7) qualified retirement planning services, or (8) qualified military base realignment and closure fringe.

Statutory fringe benefits

While Section 132 is not exhaustive with regard to statutory fringe benefit provisions within the Internal Revenue Code, it is the centerpiece. One of the most significant fringe benefits for employees, the qualified retirement plan, is governed under Section 401. Qualified Pension, Profit-Sharing, and Stock Bonus Plans. Internal Revenue Code Subchapter D--Deferred Compensation, Etc., Part I--Pension, Profit-Sharing, Stock Bonus Plans, Etc. more fully covers these deferred compensation plans. In addition, Section 74(c) excludes "employee achievement awards" for length of service or safety achievements, Section 79 excludes group term life insurance benefits provided by an employer, and Section 106(a) excludes accident and health insurance coverage provided by an employer.

Eight fringe benefits excluded from gross income

Section 132(a)(1): No-Additional-Cost Service. A No-Additional-Cost Service is defined in Section 132(b) as any service provided by an employer to an employee if (1) the service is offered for sale to customers in the ordinary course of the employer's business and (2) the employer incurs no substantial additional cost in providing the service to the employee.

Section 132(a)(2): Qualified Employee Discount. A Qualified Employee Discount is defined in Section 132(c) as any employee discount with respect to qualified property or services to the extent the discount does not exceed (a) the gross profit percentage of the price at which the property is being offered by the employer to customers, in the case of property, or (b) 20% of the price offered for services by the employer to customers, in the case of services.

Section 132(a)(3): Working Condition Fringe. Working Condition Fringe is defined in Section 132(d) as any property or services provided to an employee to the extent that, if the employee paid for the property or services, the payment would be allowable as a deduction under Section 162 or 167.

Section 132(a)(4): De Minimis Fringe. De Minimis Fringe is defined in Section 132(e) as any property or service whose value is so small as to make accounting for it unreasonable or administratively impracticable.

Section 132(a)(5): Qualified Transportation Fringe. Qualified Transportation Fringe is defined in Section 132(f) as (1)(A) transportation in a commuter highway vehicle between the employee's residence and place of employment, (B) any transit pass, or (C) qualified parking, if provided by an employer to an employee. A bicycle commuter benefit will be available beginning in 2009. [cite news | first= | last= | coauthors= | title=Bike commuter benefit now law | date= | publisher= | url = | work = | pages = | accessdate = 2008-10-07 | language = ]

Section 132(a)(6): Qualified Moving Expense Reimbursement. Qualified Moving Expense Reimbursement is defined in Section 132(g) as any amount received by an individual from an employer as payment for expenses that would be deductible as moving expenses under Section 217 if paid by the individual.

Section 132(a)(7): Qualified Retirement Planning Services. Qualified Retirement Planning Services is defined in Section 132(m) as retirement planning advice or information provided to an employee and spouse by an employer maintaining a qualified employer plan.

Section 132(a)(8): Qualified Military Base Realignment and Closure Fringe. Qualified Military Base Realignment and Closure Fringe is defined in Section 132(n) as one or more payments under Section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966 to offset the adverse effects on housing values from military base realignment or closure.

Further information

For further information regarding the fringe benefits excluded from gross income under Section 132(a), see Section 132 in its entirety.


* Donaldson, Samuel A., Federal Income Taxation of Individuals: Cases, Problems and Materials, 90, 92 (2nd. Ed. 2007).
* IRC Section 132.

Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Internal Revenue Code — The Internal Revenue Code (or IRC; more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in… …   Wikipedia

  • Employer transportation benefits in the United States — An employer may provide transportation benefits to their employees that are tax free up to a certain limit. Under the US Internal Revenue Code section 132(a), the qualified transportation benefits is one of the eight types of statutory employee… …   Wikipedia

  • Employer Transportation Benefits in the United States — An employer may provide transportation benefits that are tax free up to a certain limit. Under the US Internal Revenue Code section 132(a), the qualified transportation benefits is one of eight types of statutory fringe benefits excluded from… …   Wikipedia

  • Mark-to-market accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Golf et environnement — L impact environnemental d un golf (ici Golf de Maurholen[1], Norvège) doit être évalué par rapport au milieu auquel il s est substitué, à l écopotentialité du site, au contexte biogéographique et humai …   Wikipédia en Français

  • 26 USC 102(c) — Under U.S. Federal law, 26 USC 102(c) governs the income tax treatment, by an employee, of gifts received by an employee from his or her employer. While gifts are typically exempt from gross income under U.S. federal income tax law, this is not… …   Wikipedia

  • Social Security (United States) — This article is about the retirement/disability program. For the general concept of providing welfare, see Social security. For other uses, see Social Security (disambiguation) …   Wikipedia

  • Patient Protection and Affordable Care Act — Full title The Patient Protection and Affordable Care Act. Acronym PPACA Colloquial name(s) Affordable Care Act, Healthcare Insurance Reform, Obamacare, Healthcare Reform Enacted by the …   Wikipedia

  • Direct lobbying in the United States — are direct methods used by lobbyists to influence United States legislative bodies. Interest groups from many sectors spend billions of dollars on lobbying. There are three lobbying laws in the U.S. They require that a lobbying entity must be… …   Wikipedia

  • Mike Gravel — United States Senator from Alaska In office January 3, 1969 – January 3, 1981 Preceded by Ernest Gr …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”