26 U.S.C. § 119: Meals or lodging furnished for the convenience of the employer

in the case of meals, the meals are furnished on the business premises of the employer, or in the case of lodging, the employee is required to accept such lodging on the business premises of his employer as a condition of his employment. In determining whether meals or lodging are furnished for the convenience of the employer, the provisions of an employment contract or of a State statute fixing terms of employment shall not be determinative of whether the meals or lodging are intended as compensation. In determining whether meals are furnished for the convenience of the employer, the fact that a charge is made for such meals, and the fact that the employee may accept or decline such meals, shall not be taken into account. an employee is required to pay on a periodic basis a fixed charge for his meals, and such meals are furnished by the employer for the convenience of the employer, whether the employee pays the fixed charge out of his stated compensation or out of his own funds, and only if the employee is required to make the payment whether he accepts or declines the meals. All meals furnished on the business premises of an employer to such employer’s employees shall be treated as furnished for the convenience of the employer if, without regard to this paragraph, more than half of the employees to whom such meals are furnished on such premises are furnished such meals for the convenience of the employer. In the case of an individual who is furnished lodging in a camp located in a foreign country by or on behalf of his employer, such camp shall be considered to be part of the business premises of the employer. provided by or on behalf of the employer for the convenience of the employer because the place at which such individual renders services is in a remote area where satisfactory housing is not available on the open market, located, as near as practicable, in the vicinity of the place at which such individual renders services, and furnished in a common area (or enclave) which is not available to the public and which normally accommodates 10 or more employees. In the case of an employee of an educational institution, gross income shall not include the value of qualified campus lodging furnished to such employee during the taxable year. 5 percent of the appraised value of the qualified campus lodging, or the average of the rentals paid by individuals (other than employees or students of the educational institution) during such calendar year for lodging provided by the educational institution which is comparable to the qualified campus lodging provided to the employee, over the rent paid by the employee for the qualified campus lodging during such calendar year. located on, or in the proximity of, a campus of the educational institution, and furnished to the employee, his spouse, and any of his dependents by or on behalf of such institution for use as a residence. an institution described in section 170(b)(1)(A)(ii) (or an entity organized under State law and composed of public institutions so described), or an academic health center. which is described in section 170(b)(1)(A)(iii), which receives (during the calendar year in which the taxable year of the taxpayer begins) payments under subsection (d)(5)(B) or (h) of section 1886 of the Social Security Act (relating to graduate medical education), and which has as one of its principal purposes or functions the providing and teaching of basic and clinical medical science and research with the entity’s own faculty. an individual who was employed as a State police officer received a statutory subsistence allowance or a subsistence allowance negotiated in accordance with State law while so employed, such individual elects, on or before April 15, 1979 , and in such manner and form as the Secretary of the Treasury may prescribe, to have this section apply to such allowance, and this section applies to such allowance, after December 31, 1969 , and before January 1, 1974 , to the extent such individual did not include such allowance in gross income on his income tax return for the taxable year in which such allowance was received, or during the calendar year 1974, 1975, 1976, or 1977. The term ‘State police officer’ means any police officer (including a highway patrolman) employed by a State (or the District of Columbia) on a full-time basis with the power to arrest. The term ‘income tax return’ means the return of the taxes imposed by subtitle A of the Internal Revenue Code of 1986. If an individual filed before November 29, 1977 , an amended return for any taxable year, such amended return shall be treated as the return for such taxable year. If any individual receives a subsistence allowance which is excluded from gross income under subsection (a), no deduction shall be allowed under any provision of chapter 1 of the Internal Revenue Code of 1986 for expenses in respect of which he has received such allowance, except to the extent that such expenses exceed the amount excludable from gross income under subsection (a) and the excess is otherwise allowed as a deduction under such chapter 1. If refund or credit of any overpayment of tax resulting from the application of this section is prevented at any time on or before April 15, 1979 , by the operation of any law or rule of law (including res judicata), refund or credit of such overpayment (to the extent attributable to the application of this section) may, nevertheless, be made or allowed if claim therefor is filed on or before April 15, 1979 .”