Collecting Forms W-9 is an administrative burden. Are there any exceptions?
• Tangible gifts with values under $100 can be given without any reporting to the Controller’s Office. Other than the value there is no restriction on the type of gift and they may include diapers, a box of groceries, personal hygiene products, etc. • The Internal Revenue Code allows for the exclusion from compensation a one-time “business gift” to an individual in an amount up to $25 (IRC 1§102, IRC §274(b)). While this exception would only apply to research study participants there is no documentation to confirm that the application of this exclusion as applied to research study participants will be allowed by the Internal Revenue Service. Departments should use this exception sparingly and with full knowledge that these payments may be subject to scrutiny from the Internal Revenue Service who at their discretion could re-characterize these “gifts” as compensation for services. All fines and penalties assessed upon examination by the Internal Revenue Service, the Commonwealth of Kent
