Is my company required under IRS regulations to request a W-9 from someone to whom I gave a "Free $25 Gift Card?"
2006-08-09 12:22:32 · 4 answers · asked by dmwtexas02 2 in Business & Finance ➔ Taxes ➔ United States
You do not need a W-9 (precursor to issuing a 1099) for prizes and awards under $600. Unless this person is going to end up getting $575 more in free gift cards this year, don't worry about it.
2006-08-09 13:11:23 · answer #1 · answered by misslabeled 7 · 0⤊ 0⤋
gifts under $25.00 are deductible only if the gift was given to a client/potential client/or employee as a reward for service. a W-9 is not required, but you need to keep for your records proof of the gift. also, anything under $25 is non taxable to your employee.
2006-08-09 12:59:28 · answer #2 · answered by jhack52593 3 · 0⤊ 0⤋
no, because the card was a gift from you to whoever for whatever reason. the irs is trying to stick it to your company
2006-08-09 12:47:05 · answer #3 · answered by jamz 5 · 0⤊ 0⤋
I would think that amount would be not of great concern.
2006-08-09 13:23:02 · answer #4 · answered by The Advocate 4 · 0⤊ 0⤋