Meeks Bay Fire District Board has problems

As noted in the monthly meeting minutes, the IRS,(yes,that IRS) has questioned the pay of board members as tax free income based on pre-tax dollar designation. Certain IRS rules allow some, not all, employees to qualify certain benefit costs to be designated "paid" before receipt . This then, allows the employee to not have income tax with held on the paid benefit amount. At issue is the definition of employee as it relates to board members. For most districts, about 99% of them, it is not an issue at all. Few board members receive more than a few dollars(gas money) for their services. At the Meeks Bay District, board members are richly compensated, magnificently so. The El Do County attorney disagrees with the IRS.
Who will win this one?
Stay tuned, the fire district is getting some close scrutiny of late.