Under IRC Sec. 274(n) , the cost of meals furnished to employees in an employer-operated facility on the employer's business premises are not subject to the 50% deduction limit if the meals are excludable fringe benefits under IRC Sec. 132(e) . In this Chief Counsel Advice, the IRS held that the value of meals provided by an airline to its crew members through a third party vendor was not excludable as de minimis fringe benefits, and the airline was subject to the 50% deduction limit. The meals were catered on the planes and did not satisfy the requirement that they be provided at an "eating facility." Although the term eating facility is not defined in the statute of regulations, it implies a designated location for the preparation and consumption of meals. CCA 201151020 .
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