[msgolds]

Hey all… this isn’t an exam-related question, but this is a hypothetical situation I discussed with a friend. I wanted to get the take of some tax professionals on it.

Let us assume that somebody had an extremely generous employer, who agrees to reimburse their employees for any federal income taxes paid during the year. Would that reimbursement itself be considered taxable income? I would think it would be.

BEC - 90 PASSED
FAR - 84 PASSED
AUD - 93 PASSED
REG - 84 PASSED

I DID IT!!!!

Using Becker Self-Study

"If we were put here to carry a great weight, then the very things we hate are here to build those muscles."

[Starlight]

Yes it is, there is a gross up calculation that is performed to ensure that the compensation amounts are correct.

REG: 86
AUD: 92
FAR: 84
BEC: 87
Ethics: Passed!
Licensed 11/20/12

Supporting my husband on his CPA journey: 75% of the way there!

[msgolds]

Okay that's what I thought. The reason I'm concerned is a friend of mine started a new job recently, and her HR person allegedly told her that the company does that. I am thinking either my friend misheard her, or something is wrong there.

BEC - 90 PASSED
FAR - 84 PASSED
AUD - 93 PASSED
REG - 84 PASSED

I DID IT!!!!

Using Becker Self-Study

"If we were put here to carry a great weight, then the very things we hate are here to build those muscles."

[Author]

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