Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What Internal Revenue Code and Regulations govern the distribution of gift and bank cards?

April 26, 2017Bank cards code distribution gift govern Internal regulations revenue

0

Posted

What Internal Revenue Code and Regulations govern the distribution of gift and bank cards?

1 Answer

0

Posted

Only specifically excluded items can be excluded from gross income. Internal Revenue Code Section 132 (a) lists the fringe benefits that can be excluded. The IRS has given additional guidance with Treasury Regulation,§1.132-6 (c), specifically addressing gift cards as a form of compensation not excludable under section 132 of the Internal Revenue Code. The IRS has further reinforced this position with Technical Advice Memorandum 200437030.