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    Created by Michael Wessels
    1. U.S. Code
    2. Title 26
    3. Subtitle D
    4. CHAPTER 43

    § 4977 Tax on certain fringe benefits provided by an employer

    (a) Imposition of tax

    In the case of an employer to whom an election under this section applies for any calendar year, there is hereby imposed a tax for such calendar year equal to 30 percent of the excess fringe benefits.

    (b) Excess fringe benefits

    For purposes of subsection (a), the term “excess fringe benefits” means, with respect to any calendar year—

    (1) the aggregate value of the fringe benefits provided by the employer during the calendar year which were not includible in gross income under paragraphs (1) and (2) of , over

    (2) 1 percent of the aggregate amount of compensation—

    1 percent of the aggregate amount of compensation—

    (A) which was paid by the employer during such calendar year to employees, and

    (B) was includible in gross income for purposes of chapter 1.

    (c) Effect of election on section 132(a)

    If—

    (1) an election under this section is in effect with respect to an employer for any calendar year, and

    (2) at all times on or after

    January 1, 1984

    (d) Period of election

    An election under this section shall apply to the calendar year for which made and all subsequent calendar years unless revoked by the employer.

    (e) Treatment of controlled groups

    All employees treated as employed by a single employer under subsection (b), (c), or (m) of section 414 shall be treated as employed by a single employer for purposes of this section.

    (f) Section to apply only to employment within the United States

    Except as otherwise provided in regulations, this section shall apply only with respect to employment within the United States.