New IRS FAQ clarifies tax treatment of work-life referral services

The Internal Revenue Service has issued frequently asked questions about the tax treatment of work-life referral services provided to employees under an employer’s program. 

A work-life referral program is an employer-funded fringe benefit that provides such services to eligible employees. Services are restricted to informational and referral consultations that help employees identify, contact and negotiate with life-management resources for solutions to such problems as:

• Choosing a child or dependent care program;
• Connecting with a local retirement or financial planner; or,
• Navigating eligibility for government benefits.   

The FAQ clarifies that, under certain circumstances, the value of services to employees through a work-life referral program can be excluded from income and employment taxes as de minimis fringe benefits.
Because this FAQ has not been published in the “Internal Revenue Bulletin,” it will not be relied on or used by the IRS to resolve cases. If a FAQ turns out to include an inaccurate statement of the law as applied to a particular case, the law will control the taxpayer’s tax liability.