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Only registered attendee will receive continuing education credit.
Product ID: 404743
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Tax Treatment of Gift Card and Certificate Sales

Live Webinar
January 22, 2019
1:00 pm ET (12 pm CT, 11 am MT, 10 am PT)
1 hour 40 minutes
Live Webinar$219Register Now
Can't Attend?   Audio & Reference Manual$219Add to Cart

Become versed in tax treatment of gift card and certificate sales.

Tax treatment of advance payments has a colorful history in tax cases and IRS guidance. The proper treatment of gift card income and whether taxpayers can take advantage of income deferral provisions for gift revenue has received significant attention from both taxpayers and the IRS in recent years. There is exciting new guidance on gift cards and revenue recognition, allowing accrual method taxpayers to defer income from gift card sales to a year later than the year of receipt.

The gift card market is influenced by the rise in demand for technologically advanced products, increase in need for cashless transactions, the surge in application areas among end users, the high adoption rate of smartphones, and growth associated with e-commerce. Total annual gift card volume increases 6% per annum on average and is projected to reach $170 billion in 2019. Since gift cards are being used in many ways, many questions arise regarding the proper treatment of gift card income, further complicated by considerations of when income should be recognized and whether income deferral provisions are applicable?

Discuss and consider tax issues for gift cards. We will review IRS guidance addressing gift cards and taxpayer concerns, including when and whether an accounting method change may be used to change the timing of income recognition associated with gift cards.

Learning Objectives

  • You will be able to discuss income deferral considerations.
  • You will be able to explain whether a gift card issuer can take advantage of deferral provision.
  • You will be able to review accounting method change considerations and strategy.
  • You will be able to identify outstanding issues affecting the treatment of gift cards.


Live Webinar$219Register Now
Can't Attend?   Audio & Reference Manual$219Add to Cart