ITG FAQ #2 Answer-Are employee benefits paid by tribal governments/entities substantially different from employee benefits paid by other employers?
No. Generally, a taxable fringe benefit is included in the income of the person performing the services. Treasury Regulation §1.61-21(a)(4) defines an employee as any person performing services in connection with which a fringe benefit is furnished, unless otherwise specifically provided. This may include a partner, director, or independent contractor. An employer is defined at Treasury Regulations §1.61-21(a) (5) as the provider of a fringe benefit in connection with payment for the performance of services. It may in fact be a client or customer of the employer who is providing the fringe benefit. The Treasury Regulations have excellent discussions and examples in this area of law.