Employer refuses to put holiday gift on W-2

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whomever
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Re: Employer refuses to put holiday gift on W-2

Post by whomever »

IANATaxLawyer, but I have made oopsies before where I incorrectly reported income. So far the IRS has always been satisfied when I responded to their nastygram by saying 'my bad, I reported that $100 of income on Line X instead of line Y'. My sense is that they want to collect all the relevant taxes but not much else.

So I'd report it as other income. If two years from now the IRS discovers what the company did and sends you a nastygram saying you didn't report $XXX in gift money, reply saying 'I reported that as other income on line X', and I expect the IRS will be satisfied. YMMV, of course, but that's what I'd do.

(In fact, one of the oopsies was reporting a few hundred bucks of income in the wrong year, which presumably actually affected my taxes for both years. I didn't redo both returns to see if I owed them money or they owed me money; I just pointed out the return where it was reported and they were happy. My sense is that the IRS just isn't going to spend a lot of money on enforcement for small amounts of money, especially when the taxpayer seemed be reasonably trying to be honest)
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JonnyDVM
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Re: Employer refuses to put holiday gift on W-2

Post by JonnyDVM »

dm200 wrote: Tue Feb 11, 2020 6:18 pm
aristotelian wrote: Tue Feb 11, 2020 6:04 pm Get it in writing from your employer that they refuse to put it on W2. That should give you a paper trail if the IRS ever comes after you.
NO! Absolutely not.

IMO, that will get you on the troublemaker list!!
Does anyone seriously think the IRS would ever care about $200 gifted to you by an employer that didn’t appear on a W2? All the tax cheats out there declaring little to no income while pocketing hundreds of thousands, but no- The guy who received a $200 gift from his employer but no tax form with it is who they are going after. Forget about it man! It’s not worth pursuing. They were trying to do everyone a favor and you're badgering them about it. If it really bothers you that much, report it as other income and that’s that.
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8foot7
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Re: Employer refuses to put holiday gift on W-2

Post by 8foot7 »

If it really bothers you, donate an equivalent amount to charity and don’t take a deduction. Morally you have squared up and saved a lot of people a lot of time and heartache.
There is a book, Don’t Sweat the Small Stuff, that I recommend reading.
Gill
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Re: Employer refuses to put holiday gift on W-2

Post by Gill »

thx1138 wrote: Tue Feb 11, 2020 8:08 pm
Gill wrote: Tue Feb 11, 2020 8:03 pm This seems to fall under the de minimus rule.
Gill
No it most certainly does not (from LadyGeek's IRS link):

Cash or cash equivalent items provided by the employer are never excludable from income.
Beg your pardon. We really are talking about how many angels can dance on the head of a pin.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
Gill
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Re: Employer refuses to put holiday gift on W-2

Post by Gill »

8foot7 wrote: Tue Feb 11, 2020 9:13 pm If it really bothers you, donate an equivalent amount to charity and don’t take a deduction. Morally you have squared up and saved a lot of people a lot of time and heartache.
There is a book, Don’t Sweat the Small Stuff, that I recommend reading.
+1
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
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MP64
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Re: Employer refuses to put holiday gift on W-2

Post by MP64 »

thx1138 wrote: Tue Feb 11, 2020 8:13 pm Since it sounds like they put it out in writing that they want you to do "other income" and you say other workers are also noting that it should really be W-2 then I'd just wait a bit on filing your taxes and see if the company changes its mind and gives an updated W-2. If they don't in the next few weeks then I'd follow their instructions to put it as "other income" and keep copies of the relevant emails as you already plan to do. But give it a little time to sort out - it would be annoying to have to file an amended return because they change their mind finally in a week or two. Amended returns - especially state returns - are typically a royal pain even with tax software.

Worst case somewhere down the road the IRS sends you a notice saying you owe $X because the company didn't do things write and you send the IRS a check for $X.
Yes, I think I'm definitely going to just wait for now and see what happens. I'm not going to talk to the company any more. I have evidence to show that I made an attempt to work things out but was told I was wrong, so I'll wait to see if other employees do anything, otherwise I'll report the income as instructed. This will make it so if the employer asks, I can say I did as they instructed, and it will also include the amount in my total income so that I pay sufficient taxes on it. The IRS may ask for clarification about the additional income, but they can't say I didn't pay my taxes.
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Cubicle
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Re: Employer refuses to put holiday gift on W-2

Post by Cubicle »

Don't cash the gift check. You never received the income & it was never reported.
"Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓
emoore
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Re: Employer refuses to put holiday gift on W-2

Post by emoore »

Gill wrote: Tue Feb 11, 2020 9:41 pm
8foot7 wrote: Tue Feb 11, 2020 9:13 pm If it really bothers you, donate an equivalent amount to charity and don’t take a deduction. Morally you have squared up and saved a lot of people a lot of time and heartache.
There is a book, Don’t Sweat the Small Stuff, that I recommend reading.
+1
+1. It's a lot of worrying about not a lot of money. You think all the other employees are going to put up this kind of fight to get it on their W2? I doubt it. Just let it go. Highly doubtful the IRS is going to audit you over a couple hundred dollars.
Vanguard Fan 1367
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Re: Employer refuses to put holiday gift on W-2

Post by Vanguard Fan 1367 »

I managed to run a small business for many years and stay out of trouble with the IRS over employee issues. I agree with those who say that cash gifts should go on the W-2. I am thinking that 25 bucks cash might be ok not on the w-2, another poster says 75 dollars is ok to give without putting it on the w-2.
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."
obgraham
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Re: Employer refuses to put holiday gift on W-2

Post by obgraham »

As one of the business owners many years ago, I learned in a similar situation that no good deed goes unpunished. When we gave a little christmas cash gift,$50 or so, it provoked nothing but trouble. Higher paid staff claimed they deserved the same percentage as lower paid. Some debated this very same tax question ad nauseam.

After that, we switched to clean $20 bills, placed in their hot little hands, and did not claim it as a business expense. "Dont tell, dont ask". Just not worth all the cr@p it caused.
KyleAAA
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Re: Employer refuses to put holiday gift on W-2

Post by KyleAAA »

Just report it as other income. Your legal obligation is fulfilled. It doesn't matter what the company does.
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