For Social Media Influencers, New Facts Follow Old Law – Partner Steven L. Jager Featured in Tax Notes

For Social Media Influencers, New Facts Follow Old Law – Partner Steven L. Jager Featured in Tax Notes

The increase of social media influencers could present taxpayers, practitioners and the IRS with opportunities to apply long standing tax rules in a variety of new situations. With platforms like YouTube and Instagram allowing people to collect followers, likes, views and money, social media influencers have become a new breed of celebrities seeking professional advisers. Partner Steven L. Jager explained that influencers often receive free products from businesses, but all those freebies are taxable income, and there is a high standard for proving something given in a business relationship is a gift.

Steven advised that influencers should try to fully separate expenditures that are supposed to be part of their businesses. “Half the battle can be educating clients about the wall they need between personal and business finances,” Steven says. “Taxpayers often need an education about the importance of proof, especially for items subject to the strict substantiation rules under section 274(d). That’s where thoughtful advisers should come in.”

Read full article here: https://bit.ly/3yBM0SH