• Structuring Retail Gift Card Subsidiaries
  • April 2, 2010
  • Law Firm: Williams Mullen - Richmond Office
  • Retail gift cards raise tax and unclaimed property audit risks and present planning opportunities. As discussed in a prior Tax Alert, the IRS designated the tax treatment of amounts received from gift card sales as a “Tier II” issue. This indicates that the IRS plans to increase the audit resources it devotes to examining retailers’ tax reporting of gift card sales.