Miller & Chevalier requested that the Internal Revenue Service (IRS) provide guidance to treat the use of employer-provided wearable devices such as fitness tracking wristbands as nontaxable de minimis fringe benefits. Companies may use these devices to encourage physical activity and a healthy diet, as part of a sponsored wellness program. The firm argues that these devices should be treated for tax purposes in a similar fashion as the personal use of company cellphones, and that the benefit should not be counted as additional wages. ‘‘Even though the personal use in this case would not be incidental to business expenses deductible under section 162, it would be incidental to the wellness initiatives that are at the core of improved health care and the corresponding reduction of health costs,’’ the firm says. Miller & Chevalier Members Marianna Dyson* and Marc Gerson submitted the request.

The full text of the request was also published in Tax Analysts as "Make Wearable Fitness Devices Tax-Free Fringe Benefit, Firm Says."

*Former Miller & Chevalier attorney