Final answer:
Employees of a CPA firm can generally exclude provided meals and lodging from their gross income when working away from their tax home, as outlined by IRS guidelines, assuming certain conditions are met.
Step-by-step explanation:
The statement regarding the exclusion of meals and lodging from gross income for employees while working away from their tax home is generally true. According to the Internal Revenue Service (IRS), meals and lodging provided to an employee for the convenience of the employer, and on the business premises of the employer, are not included in the gross income of the employee. Since the audit in Delaware requires the employees to be away from their main place of work, the associated meals and lodging may be considered a deductible business expense for the employer and excludable from the employees' gross income provided it meets certain conditions outlined in the IRS guidelines. Conditions such as proximity to the workplace, length of stay, and the business necessity of the meals and lodging being provided.