Lorman offers professional resources regarding COVID-19 and the 2020 Elections

Show navigation

Available in:

OnDemand Course

Tax Treatment of Gift Card and Certificate Sales

Gain a better understanding of the proper treatment of gift card income and whether you can take advantage of income deferral provisions.

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. Gift card revenue is exploding. Total annual volume of gift cards is projected to reach $160 billion by 2018, with only $1 billion going unused. 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. To be addressed is the limited exception available for coupons issued with sales and the application of this deferral provision following the Capital One decision.

Learning Objectives

  • You will be able to discuss income deferral considerations.
  • You will be able to review accounting method change considerations and strategy
  • You will be able to explain whether a gift card issuer can take advantage of deferral provision
  • You will be able to identify case law applicable to gift card accounting treatment

Runtime: 104 minutes
Purchase Options

More Program Information

Why Lorman?

Over 33 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Review Income Recognition Rules, IRC §451 and Administrative Guidance That Allows Income Deferral for Advance Payments

  • Stephen B. Jordan, EA
  • History and Development of Primary Authority

    Discuss Application of Advance Payment Guidance for Gift Cards

    Review IRS Initiatives Designed to Address the Treatment of Advance Payments for Gift Card Income

    Evaluate IRS Guidance Addressing Gift Cards and Provide Practice Tips for Implementation

    Gift Card Considerations and Outstanding Issues Not Addressed by IRS Guidance

    Examples and Case Law Considerations

    Purchase Options

    More Program Information

    Why Lorman?

    Over 33 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

    Credits

    OnDemand Course

    This course was last revised on August 16, 2018.

    Call 1-866-352-9540 for further credit information.

    • CPE/NASBA - QAS Self Study 2.5 including Taxes 2.5
       
    • Lorman Education Services is registered with the National Association of State Boards of Accountancy (NASBA) as a QAS Self Study sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: https://www.nasbaregistry.org/cpas/complaints. For more information regarding administrative policies such as complaint and refund, please contact our offices at 866-352-9539. CPE Credit: Maximum Credit Hours: 2.5 each session (based on a 50 minute credit hour). You must attend at least 50 minutes to obtain credit. Field of Study: Taxes for 2.5 hours. Prerequisite: . Level of Knowledge: Intermediate. Teaching Method: Seminar/Lecture. Advance Preparation: None. Delivery Method: QAS Self Study. Please refer to the information in this advertisement for outline, course content and objectives. Upon completion of this course, you will receive a certificate of attendance. Final approval of a course for CPE credit belongs with each state's regulatory board.
       
    Purchase Options

    More Program Information

    Why Lorman?

    Over 33 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

    Faculty

    Stephen B. Jordan, EA

    Stephen B. Jordan, EA

    Stephen B. Jordan, EA

    • Owner at Stephen B. Jordan, EA for more than 30 years
    • More than 35 years’ experience in accounting, auditing and tax services
    • Experience: Tax Defense Network – Referral Partner; Lorman Education Services; IRS Form 1099 Reporting: What You Need to Know; Tips for Understanding IRS Field Audits; Understanding Complex Internal Control Issues; Tax Treatment of Gift Cards & Sales Certificates; Past community outreach volunteer, NH Pro-Bono, Low Income Taxpayer Project; past community outreach volunteer, Bentley Low Income Taxpayer Clinic; past adjunct faculty of accounting and taxation at: Franklin Pierce College, 1988-1989; New Hampshire College, 1993; Hesser College, 1999; KPMG Peat Marwick – Sr Accountant, 1982 -1985; Wolf & Company CPA’s PC – Audit Supervisor/CISA, 1985 – 1986; General Cinema Corp – Sr Internal Auditor, 1986 – 1987; Comprehensive Accounting Corporation – Affiliate/Accountant 1987 – 1990; has written accounting and tax articles for EA Journal and National Public Accountant professional journals; speaker at self-help tax strategy seminars
    • Member of the NATP, NAEA, MaSEA and NNESEA
    • Currently lives in Windham, NH. Outside his practice, enjoys a variety of fitness activities, cooking, reading and the arts
    • M.S.T. degree, William Howard Taft University; College for Financial Planning; M.B.A. degree, Indiana University; B.S. degree, University of New Hampshire
    • Can be contacted at 603-508-0124 or [email protected]
    Purchase Options

    More Program Information

    Why Lorman?

    Over 33 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

    All of your training, right here at Lorman.

    Pay once and get a full year of unlimited training in any format, any time!

    • Live Webinars
    • OnDemand Webinars
    • MP3 Downloads
    • Course Manuals
    • Audio Recordings*
    • Executive Reports
    • White Papers and Articles
    • Sponsored Live Webinars

    Additional benefits include:

    • State Specific Credit Tracker
    • Members Only Newsletter
    • All-Access Pass Course Concierge

    * For audio recordings you only pay shipping

    Questions? Call 877-296-2169 to speak with a real person.

    Sign Up Today
    With This Course

    Access to all training products for one year
    $699/year

    Unlimited Lorman Training

    With the All-Access Pass there is no guessing what you will need for your yearly training budget. $699 will cover all of your training needs for an entire year!

    Easy Registrations

    Once you purchase your All-Access Pass you will never be any further than one-click away from attending any Lorman training course.

    Invest in Yourself

    You haven't gotten to where you are professionally by luck alone; it's taken a lot of hard work and training. Invest in yourself with the All-Access Pass.

    Product ID: 404699
    Published 2018
    Purchase Options

    Available in Multiple Formats

    Purchase this course and learn on your schedule!