The IRS wants to redefine 'line of business' for employee discounts

The IRS is proposing new rules for how companies define their "line of business" when offering employee discounts or free services. This means employers might have more flexibility to offer perks across different parts of their company without those perks being taxed as income.

For decades, the rules around untaxed employee perks have been strict: a car company could give its employees a discount on cars, but not on, say, its financial services. These proposed changes could allow companies with diverse operations to offer a wider range of tax-free benefits to their employees. This could make it easier for large, diversified companies to attract and retain talent by offering more comprehensive perk packages.