For many years, meals and lodging provided to employees have been subject to special tax treatment. Employees of C corporations have always been eligible for tax-privileged treatment of meals and lodging; employees of S corporations have been limited in eligibility by the rules in force since 1982. A recent Wyoming District Court decision has focused attention on the differences in treatment for employees between C and S corporations.
Harl, Neil E.
"Meals and Lodging in S Corporations,"
Agricultural Law Digest: Vol. 5
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol5/iss14/1