A retired airline pilot took advantage of a “fly for free” fringe benefit, providing relatives with free airline tickets. Those relatives didn’t include the value of those tickets in income on their 2016 tax returns, and the IRS issued a notice of deficiency. The ensuing disagreement hinged on one question: Who is an “employee” under the meaning of Section 132(h)? This case study is part of a Self-Study Video Course available from Western CPE that can be purchased for CPE credit. Visit https://wcpe.co/podcast to get started.