Include local sales tax when determining Fair Market Value for Taxable Fringe Benefit?
Hi all, searched the archives, and unless I missed it...I could use your expertise.
Employees received a tangible gift that we need to add the value of to their W-2 wages as a Taxable Fringe Benefit. Do we include local sales tax in determining FMV? I think not, and have always used just regular retail (arms length transaction). Would appreciate any input from the group.