Originally Posted by
Eaglebeak
If the cost of the insurance the company provides for us is taxed and the bank money you use to commute to MEM is taxed as income. Why wouldn't the IRS rule that the money FEDEX payed towards equalizing our taxes be a benefit that was taxed as income. Man is that a scary scenario? Wonder if the tax lawyers scoped that one out
Well, if you had been to the roadshow, you would know that it is, so any money Fedex adds to pay your taxes has to be grossed up so the taxes on the tax payment are covered. If your tax rate is say 33% (for easy math, since I'm a pilot and not an accountant,) if Fedex needs to add $12000 to cover your tax bill (US and HKG or CDG,) then they actually will add $18000, as 33% or $6000 is an additional tax on the payment.