It's probably best to not get lost in the details. The solution to this is real simple and can be very effective and hassle-free for everyone. The IRS will hard

It's probably best to not get lost in the details. The solution to this is real simple and can be very effective and hassle-free for everyone. The IRS will hardly care about the coffee or water or the private phone calls you are allowed to make on your company phone. The easiest solution to this is to just have a reasonably high cutoff point for such perks, like "companies can only spend $150 per month per employee on such perks and leave them tax free". Problem solved. Now most companies offering only small stuff that has traditionally been offered to many employees (coffee, water, ...) are no longer affected and only those who offer substantial perks are included. This is also less work both for the companies and tax collection agencies.