If gifts from employeers are taxable
Reader comment on: Taxing Review Copies
Submitted by Lyle (United States), Jun 24, 2015 22:04
The IRS guideline for not worth accounting for is $40. http://www.payrollexperts.net/employee-gifts-and-how-they-affect-payroll-taxes/ So for trade books its not a problem as few exceed $40,. but the IRS guidelines say that over 40 is no no longer de minimus. The impression I get is if a gift is over $40 in an employeer employee situation it needs to be reported. In addition you could say the copy of the book is a quid pro quo for the review, essentially payment for the review, thus a form of wages.
Technically of course if you get for example jury pay for one day you are supposed to report it to the IRS also.
So it is as much the fault of textbook cost inflation as the pre-existing rules.
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The Future of Capitalism replies:
well if a $20 book is "payment" for the time spent reading the book and writing the review, then isn't there a minimum wage problem in addition to the tax problem?
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