Video Tips: Tax Consequences of Employee Holiday Gifts

It is a common practice this time of year for employers to give their employees gifts. Where a gift is infrequently offered and has a low fair market value, it would be treated as a de minimis fringe benefit. As such, it would be tax-free to the employee, and its cost is tax-deductible by the employer.

Share this article...

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulations governing written tax advice, please be advised that any tax advice included in this communication, including attachments, is not intended, and cannot be used, for the purpose of (i) avoiding any federal tax penalty or (ii) promoting, marketing, or recommending any transaction or matter to another person. Confidentially Notice: This email message is CONFIDENTIAL and is intended for the addressee only. If you are not the intended addressee of this message, you may not use, copy or disclose to anyone the contents of this message or any information contained herein or any attachment thereof. If you have received this message in error and are not the intended addressee, please advise the sender by reply email and delete this message immediately.


*The IRS does not endorse any particular individual tax return preparer. For more information on tax return preparers go to IRS.gov.