What Is Irs 132
IRS 132 refers to Section 132 of the Internal Revenue Code (IRC), which deals with certain fringe benefits that can be excluded from an employee's gross income. This section defines various types of fringe benefits, including working condition fringes, de minimis fringes, and qualified transportation fringes.
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Fringe Benefits Overview: According to 26 U.S. Code § 132, fringe benefits provided by an employer are generally subject to taxation. However, specific benefits outlined in this code section are exempt from taxation, thus allowing employees to receive certain perks without increasing their taxable income.
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Types of Fringe Benefits: The Internal Revenue Code Section 132(a) enumerates eight types of fringe benefits that may be excluded from gross income. These benefits can include those offered under certain conditions, such as de minimis benefits, which are minimal in value and are not specifically excluded under other provisions (IRC 132).
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Qualified Transportation Fringe: One particular category under IRC 132 is the qualified transportation fringe benefits, which includes provisions for reimbursements for transportation costs such as commuting expenses. More insights into these reimbursements can be found in the detailed regulations outlined in Part I Section 132(f).
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Education Benefits: Section 132(d) also addresses educational assistance, where benefits beyond a certain threshold ($5,250) may be excluded from taxable income under specific conditions, which are discussed in documents like the Fringe Benefit Guide from the IRS.
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De Minimis Benefits: The term "de minimis benefits" refers to fringe benefits that are so minor in value that accounting for them would be unreasonable. These benefits, as indicated in the IRS resources, qualify for exclusion under section 132(a)(4) and cover various items not otherwise mentioned (De minimis fringe benefits).
To further explore these topics, you can refer to additional resources such as GovInfo for official documentation and detailed statutory language regarding fringe benefits as defined under IRC Section 132.
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