A safe harbor method of accounting is provided in RP 2011-17 for eligible taxpayers that issue gift cards to customers in exchange for returned merchandise, pursuant to which a taxpayer will be allowed to treat gift cards issued to customers for returned goods as the payment of a cash refund ...
The article reports on a second directive on gift cards and gift certificates issued by the U.S. Internal Revenue Service (IRS) in 2009. The guidance increases the use of a separate gift card firm to manage a taxpayer's gift card or Certificate program to Part A status and providing more...
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...
Why are wages reported as an expense when the work occurs, but the employees' tax records report them when they are paid? How do you determine whether a person is an independent contractor or an employee? Does a company have to use the IRS years of useful life for depreciation? How shoul...
. Also, the IRS will never deal in gift cards, so being asked to pay for your taxes — or do anything tax-related — with a gift card is an automatic red flag. 9. Ghost tax preparer scams Anyone you pay to prepare your tax return must have a valid preparer tax identification number...
If you accept credit card payments online, you may have to report payments that you receive from credit card or third-party processors on your 1099-K forms.
The scammers tacked on additional fees they claimed she owed. In all, she handed over $7,900 in gift cards for Target and iTunes. During the ordeal, her father could only helplessly watch as the fraud alerts rolled in. “As a dad, a parent, not to be able to help to help your ...
Marco is employed as an accountant by a large firm. When he travels for his audit work, he submits his travel receipts for reimbursement by his firm, which has an accountable plan for its employees. Which of the following statements is correct about accountable plans?
aA new revenue procedure allows a taxpayer to defer recognizing in gross income advance payments received from the sale of gift cards that are redeemable for goods or services of the taxpayer or a third party. This reverses IRS\'s earlier position that deferral was appropriate only where the ...