Are gift cards taxable? Yes, gift cards are taxable. According to the IRS, gift cards for employees are considered cash-equivalent items. Like cash, include gift cards in an employee’s taxable income—regardless of how little the gift card value is. But, there is an exception. You might...
Internal Revenue Service (IRS). It mentions that the memorandum was released to address the issue on the treatment of gift card income in cases where a taxpayer maintains a separate gift card company that operates the gift card program but does not provide goods for which the gift cards can ...
The Internal Revenue Service (“IRS”) recently issued guidance (the “Rev Procs”) to retailers on methods of accounting for gift cards for U.S. federal income tax purposes. Revenue Procedure 2011-17[1](“RP 2011-17”) and Revenue Procedure 2011-18[2](“RP 2011-18”) liberalize for ...
The scam: A fake employee from the IRS or a utility company calls, texts, or emails you and says you owe them money. If you don’t pay them, they’ll arrest you or shut off your service. And they ask you to pay them by buying gift cards and giving them the gift card numbers. ...
Gift cards are among the most popular targets for scammers. Learn how to spot (and avoid) the latest gift card scams.
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aIn the past, IRS took a narrow view of which types of gift cards qualified for deferral . For example, Legal Advice Issued by Field Attorneys 20082801F, dealt with a Corporation that formed Cardco, a separate wholly-owned subsidiary, to manage its trade name gift card sales. Cardco's ...
In 2016, the U.S. Treasury Inspector General for Tax Administration (TIGTA) issued ascam alertwarning taxpayers of callers who were impersonating IRS or Treasury Department employees to swindle payments processed as iTunes and other gift cards. The alert is still pinned to the top of TI...
Are there any legal or payroll issues we need to be aware of when giving holiday gifts to our employees? The IRS has different tax reporting and deduction rules depending on the cost of the gift and whether it is considered tangible (ham, turkey, wine, entertainment tickets etc.) or intang...
Some of the most popular kinds of gift cards scammers request are for eBay, Target andAmazon,according to the FTC. While scammers will always try to create a sense of urgency, if you receive a similar message, take a deep breath and think about how you can verify the situation, such ...