Ryland
Platinum Member
- Aug 9, 2001
- 2,810
- 13
- 81
I just received my emails also. Cool. Now if I could just find out how much the tax on both is going to be I can decide whether I actually want to grab Office.
According to IRS publication 950 gifts of under $12,000 don't have to be reported to the IRS by the GIVER (unless the giver is a corp, ugh). The receiver doesn't report the gift. IRS 950
According to IRS publication 950 gifts of under $12,000 don't have to be reported to the IRS by the GIVER (unless the giver is a corp, ugh). The receiver doesn't report the gift. IRS 950
Email from Microsoft on this.
Hello Thomas,
Thank you for contacting Microsoft Online Customer Service.
I appreciate the information that you have provided. I would like to inform you that they might offer pirated software. If you would like to get more information about piracy, we do have a piracy support website that provides information about this serious issue. You can visit this web site at:
http://www.microsoft.com/piracy/ReportingUs.mspx
Thomas, we also have a piracy Hotline, which you can reach at 1-800-785-3448 (Monday through Friday 7:00 A.M. to 5:30 P.M. Pacific time) or write to: piracy@microsoft.com
I hope the above information is helpful.
Thank you for using Microsoft products and services.
Praveen
Microsoft Online Customer Service Representative
Hello Thomas,
Thank you for contacting Microsoft Online Customer Service.
I appreciate the information that you have provided. I would like to inform you that they might offer pirated software. If you would like to get more information about piracy, we do have a piracy support website that provides information about this serious issue. You can visit this web site at:
http://www.microsoft.com/piracy/ReportingUs.mspx
Thomas, we also have a piracy Hotline, which you can reach at 1-800-785-3448 (Monday through Friday 7:00 A.M. to 5:30 P.M. Pacific time) or write to: piracy@microsoft.com
I hope the above information is helpful.
Thank you for using Microsoft products and services.
Praveen
Microsoft Online Customer Service Representative
Wow, that's a little unsettling. Everything I've heard up to this point suggested that this was a legitimate deal. What exactly did you sent Microsoft? Does this response pertain to the whole www.powertogether.com deal, or just to the email link that we were sent in the last couple of days?
Ryland
Platinum Member
- Aug 9, 2001
- 2,810
- 13
- 81
I just emailed the contact we were given if our gifts don't show up in 6-8 weeks about the gift tax. Hopefully they can point me to the appropriate IRS publication that they are referencing. Can somebody int he forum that Michael is responding to ask which publication they got the $600 from?
I sent them an email with their website and a link to this forum entry, and that is their response.
---
CUSTOMER PROVIDED SYSTEM PROPERTIES
Country/Region: United States
---
PRODUCT
Windows Vista
---
SYSTEM PROPERTIES
Ref URL: http://support.microsoft.com/contactus/?ws=mscom
O/S: windows nt 5.1
O/S Lang: en-us
Br: msie 7.0
Br lang: en-us
---
QUESTIONS OR COMMENTS
Message: Originally from http://forums.anandtech.com/messageview...atid=40&threadid=1966524&enterthread=y The website http://www.powertogether.com/ is saying they are giving away free windows vista and ms office as gifts. I wondered if this is possible since I haven't heard about it from your site.
---
It should be noted that I have given out gifts with my company before, and I did not need people's SSN to give out gifts. You must claim, however, the gift if it is a large cost at the end of the year (like thousands and thousands of dollars?), but as far as I know that doesn't pertain to them. For example, I went to a Microsoft sponsored go-live with VS2005 and we all received 1 copy of VS2005 pro and 1 copy of SQL Server 2005 with licenses, and they did not need my SSN or anything. They wanted my contact information, but as far as gifts go as a company you need to show the number of items given, why they were given and how it pertains to your business, and a list of people they were given to for auditing reasons, the total cost of the gifts (not sale cost, but production cost) and the amount claimed as reduction for tax purposes. I've been following the rules dictated in my state, which may be different in every state, but I have never had any trouble.
Update: I may have been wrong about the recipient side of things. I called a friend who works in Revenue for our state and asked, and she said that according to the IRS, Publication 17: prizes and awards in goods or services must be included in your income at their fair market value. This income should be reported on line 21 of federal form 1040. They may want to issue a form 1099-M showing the value of the prize. A 1099 works much like a W-2 but is for other types of income.
---
CUSTOMER PROVIDED SYSTEM PROPERTIES
Country/Region: United States
---
PRODUCT
Windows Vista
---
SYSTEM PROPERTIES
Ref URL: http://support.microsoft.com/contactus/?ws=mscom
O/S: windows nt 5.1
O/S Lang: en-us
Br: msie 7.0
Br lang: en-us
---
QUESTIONS OR COMMENTS
Message: Originally from http://forums.anandtech.com/messageview...atid=40&threadid=1966524&enterthread=y The website http://www.powertogether.com/ is saying they are giving away free windows vista and ms office as gifts. I wondered if this is possible since I haven't heard about it from your site.
---
It should be noted that I have given out gifts with my company before, and I did not need people's SSN to give out gifts. You must claim, however, the gift if it is a large cost at the end of the year (like thousands and thousands of dollars?), but as far as I know that doesn't pertain to them. For example, I went to a Microsoft sponsored go-live with VS2005 and we all received 1 copy of VS2005 pro and 1 copy of SQL Server 2005 with licenses, and they did not need my SSN or anything. They wanted my contact information, but as far as gifts go as a company you need to show the number of items given, why they were given and how it pertains to your business, and a list of people they were given to for auditing reasons, the total cost of the gifts (not sale cost, but production cost) and the amount claimed as reduction for tax purposes. I've been following the rules dictated in my state, which may be different in every state, but I have never had any trouble.
Update: I may have been wrong about the recipient side of things. I called a friend who works in Revenue for our state and asked, and she said that according to the IRS, Publication 17: prizes and awards in goods or services must be included in your income at their fair market value. This income should be reported on line 21 of federal form 1040. They may want to issue a form 1099-M showing the value of the prize. A 1099 works much like a W-2 but is for other types of income.
Luthien,
That is pertaining to taxes between 2 individuals, not between a business and an individual. There are separate rules between businesses and individuals, etc.
That is pertaining to taxes between 2 individuals, not between a business and an individual. There are separate rules between businesses and individuals, etc.
There are two different kinds of taxes: Gift taxes and income taxes.
Regarding gift taxes: Assuming you are accepting this as an individual (I'm not sure about the rules pertaining to organizations accepting gifts), you only pay "gift tax" on gifts in excess of $12,000 in one year. That means that almost no one without a really(!) generous relative will end up paying any gift tax. Just because you won't have to actually pay the gift tax, however, doesn't mean that Microsoft doesn't have to report it.
Regarding income taxes: You will have to put the fair market value of this gifts on your income tax return for 2008. This is where you will be taxed, and is the other reason that Microsoft needs to report the "transaction" to IRS.
Anyone had any problems faxing in the W9? I tried about 10 times today while at work and got constant busy signals all day.
You can receive a prize or award as either an employee or a non employee. If you receive it as an employee, your employer is required to add the value of that prize or award to your paycheck and withhold income taxes from it. If you receive it as a non employee, and the value of the prize or award exceeds $600, the paying business or organization is required to issue you federal form 1099-MISC. A copy of that form is sent to the IRS so they will be looking for that item on your tax return.
The tax you owe depends on which tax bracket you are in.
The tax you owe depends on which tax bracket you are in.
How did you receive your W9?
To my knowledge it will be delivered with the Vista disk. Have you received your vista disk?
And why and where are you faxing it?
The W9 form is to supply your SS# so that Microsoft can send that info to the IRS It cannot be delivered with the Vista disk since it is needed to be received by MSFT BEFORE they send you the software
Ahh yes Thank you Zigner and Welcome to the Forum A-1 Top quality post for your first one.
This form is issued to you and you report it when filing on your IRS form. This probably means that your all going to have to file form 1040a. If your used to filing 1040ez your not going to like it.
I apologize for my idiocy. I had not read the second email in its entirety. Please forgive my inability to function as a human with half a brain.
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