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INTERPRETING THE TAX code related to meetings can be a daunting task. But what it boils down to for incentives is that the recipient of a pure incentive trip - one where the trip is being taken primarily for pleasure - is responsible for paying the taxes on the fair market value of that trip; that is, the typical cost of airfare, hotel accommodations, ground travel, etc. Some companies award a cash bonus along with the trip to help offset the taxes that will be owed by the recipient.