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Old Sep 7, 16, 10:58 am
  #61  
flyerCO
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Originally Posted by thesaints View Post
unless the IRS can prove that the OP's wife performed work for the company it is not possible to define the J ticket as "compensation", or "income".
It could be a "donation" from the company to the wife, but only if there is evidence that the husband acted as an intermediary and planned to do so.
Otherwise it is a donation from husband to wife.
Nope, it would be a "donation" from the company. Sorry, but the IRS is well versed at the little "tricks" to try and not have something taxed. They would consider it taxable income for him. Again, it's unlikely they will ever know. However that doesn't change the fact that it still becomes taxable. It's basically no different a type of scam then someone who says I'll sell you an envelope for $1000, but the envelope happens to have $1000 tickets in it. They know who the value is going to (if they find out) and will consider it taxable for the employee. No different then if the company gave the employee $4000 and said book a ticket for your wife. The $4000 would be taxable income.

I even verified with someone who works with the IRS doing audits. They would consider it taxable income if they find out.
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