26 USC 4977 - Tax on certain fringe benefits provided by an employer

U.S Code last checked for updates: Nov 22, 2024

§ 4977.

Tax on certain fringe benefits provided by an employer

(a)

Imposition of tax

(b)

Excess fringe benefits

For purposes of subsection (a), the term “excess fringe benefits” means, with respect to any calendar year—

(1)

the aggregate value of the fringe benefits provided by the employer during the calendar year which were not includible in gross income under paragraphs (1) and (2) of section 132(a), over

(2)

1 percent of the aggregate amount of compensation—

(A)

which was paid by the employer during such calendar year to employees, and

(B)

was includible in gross income for purposes of chapter 1.

(c)

Effect of election on section 132(a)

If—

(1)

an election under this section is in effect with respect to an employer for any calendar year, and

(2)

at all times on or after January 1, 1984, and before the close of the calendar year involved, substantially all of the employees of the employer were entitled to employee discounts on goods or services provided by the employer in 1 line of business,

for purposes of paragraphs (1) and (2) of section 132(a) (but not for purposes of section 132(h)), all employees of any line of business of the employer which was in existence on January 1, 1984, shall be treated as employees of the line of business referred to in paragraph (2).

(d)

Period of election

(e)

Treatment of controlled groups

(f)

Section to apply only to employment within the United States

(Added Pub. L. 98–369, div. A, title V, § 531(e)(1), July 18, 1984, 98 Stat. 885; amended Pub. L. 99–514, title XVIII, § 1853(c)(1), (2), Oct. 22, 1986, 100 Stat. 2871; Pub. L. 103–66, title XIII, § 13213(d)(3)(D), Aug. 10, 1993, 107 Stat. 474; Pub. L. 104–188, title I, § 1704(t)(66), Aug. 20, 1996, 110 Stat. 1890.)

cite as: 26 USC 4977