IRS: Your food is taxable!

By:  Diane Benjamin

Should all the “business” breakfasts and lunches consumed by staff and the elected be called additional compensation, and therefore taxed?

When only the “preferred” aldermen ever consume, how can the City claim they have a “legitimate business purpose” as defined by law?  What is the “legitimate purpose” for last Monday’s pizza party, the staff was hungry?

The Edgar County Watchdogs have been mining corruption at the College of DuPage since at least 2014.  The president was forced out without his planned golden parachute, and three Board members are now refusing to attend meetings in protest.  They may be in more trouble:

“The IRS determined that “a significant and substantial number” of Waterleaf restaurant meals charged on college house accounts — 44 percent in 2013 — did not have a business purpose or had insufficient documentation. As a result, an IRS audit found, they should be considered taxable employee compensation.” (Tribune article)

I wonder how that is different from Bloomington’s “light suppers”?

Read more from the Watchdogs website:  http://edgarcountywatchdogs.com/2016/01/college-of-dupage-thank-you-irs/

 

13 thoughts on “IRS: Your food is taxable!

  1. And then of course with (proper) documentation that too should be available to the citizens for review….You met with who, for what??? These lunches are b.s. Meet on regular office time and let people provide their own lunches. I am willing to bet that this lunch time is considered work time.

      1. I’ll compile the list. Fiscal year or calendar year? How does one go about sending the information to the IRS?

  2. Isn’t a meeting of THREE or more covered under the Open Meetings Act? Otherwise they could discuss using the Militia to steal flamingo feathers under cover of darkness, and thereby deprive the public of “quality of life”..

      1. They are discussing City business at those 3 person committee meetings. Budget task force thank you party was compensation for consultation. How can someone describe a restaurant meal “for one” as a working breakfast or lunch?

  3. When a person TRAVELS (as I used to) for BUSINESS, they save the receipts (Hotel, meals, gas, airline tickets, parking, tolls, etc) for the company, as they ARE tax deductible, so if these folks are indeed doing meals on CITY (read- OUR) money, WHO gets the deduction, and WHO has to declare it as “compensation”? And WHERE is the AUDITOR? This is accounting 110.

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