<sgupta[at]gupta.hn.org> wrote

- quote -

For employer provided tuition to be a fringe benefit, it has
to be made available to all employees of the company.

Otherwise, an MBA probably isn't necessary for the position
you hold.

If they want to send you to a class or two to improve your
skills, that's one thing, but clearly they aren't compelled
to pay your MBA tuition.

The safest thing for them is to put it on your W-2.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Hi,

My employer is willing to pay for my 2 year MBA program.
However we are a small firm and they are confused about
whether to issue me a W2 or not for these expenses. They
are leaning towards issuing me a W2 to play it safe.

I am trying to convince them that this classifies as
"Fringe work benefit" and can be claimed as a business
expense.

Facts:

1. I am currently a senior manager in the company.
2. I am attending a two year MBA program - full time


I feel the following argument can be used

================================================== ==============

FROM IRS publication would be

http://www.irs.gov/publications/p15b/ar02.html#d0e2154

Education. Certain job-related education you provide
to an employee may qualify for exclusion as a working
condition benefit. To qualify, the education must meet
the same requirements that would apply for determining
whether the employee could deduct the expenses had the
employee paid the expenses. The education must meet at
least one of the following tests. The education is
required by the employer or by law for the employee to
keep his or her present salary, status, or job. The
required education must serve a bona fide business
purpose of the employer.

The education maintains or improves skills needed in
the job.

However, even if the education meets one or both of
the above tests, it is not qualifying education if
it: Is needed to meet the minimum educational
requirements of the employee's present trade or
business, or Is part of a program of study that will
qualify the employee for a new trade or business.

================================================== ===========


In my case I believe

The education maintains or improves skills needed in
the job. - Which it does as a manager. so one of the
conditions is applied

The exclusion will no apply in this case as the
education is not needed to meet minimum requirements
and MBA has been proven to not qualify the employee
for a new trade or business.

Can someone validate or help me make the argument
more conducive. This would really help

thanks much

viper

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >