Deductions & credits


@rickieg12 wrote:

it sounds like my employers are talking about #4 with my current arrangement: ...And the employer can deduct the expense on their tax return as a business expense.  (This is only allowed with an accountable plan, where the employee proves their expenses with receipts.). i provide receipts at the end of the month, and they do direct deposit.

Although I am willing to be proven wrong, I think that this sort of arrangement is not allowed.  It doesn't make sense that the IRS would have specific rules on tax-free employee housing, and then look the other way when an employer used "necessity" to justify providing tax-free housing that doesn't follow those rules.

 

However, this is much more their risk than yours.  If they are willing to continue the relationship I would probably not barge into the CEO's office and demand that they start taxing you.  And you should not rely on the advice of anyone who you haven't paid for a professional opinion who will cover you with their errors and omissions insurance, especially someone on the internet who could be almost anyone, anywhere, with any or no credentials. 

 

Since I think they are doing it wrong, my answer for "how long can they keep doing it" is "as long as they want to."