Do You Owe the IRS for Rewards Points and Cash Back? The Answer Could Be Yes
Fundera
JUNE 16, 2018
The IRS’s position is that these transaction-related benefits are “rebates” or “discounts,” not taxable income. The IRS first came to this conclusion in a 2002 memorandum and later confirmed this reasoning in a 2010 memorandum. …But Rewards Can Limit Your Business’s Tax Deductions.
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