Indianapolis - December 16, 2017 - In a major development, the IRS has declared that Santa Claus can operate as a tax exempt entity. This comes after the iconic provider of gifts to people around the world had been forced into paying income taxes in the United States since 1862.
This is according to reporting from Fiscal Tax Company. The Indianapolis firm has looked into the situation surrounding the figure and has found that Santa is not to be taxed because of the nature of his work and how it does not appear to generate income. This in turn allows him to be interpreted as a tax exempt entity.
The company states that Santa Claus had been working as a charitable figure over the years as he gives toys to children. He is not asking for things in return for them although the concept of those children being good girls and boys has been critical to his general operation.
Santa Claus, who also goes under the Kris Kringle moniker, has had to pay taxes to the United States government since the first income tax was introduced in 1862. Although that original income tax was declared unconstitutional in 1894, the development of new tax standards from the Internal Revenue Service in 1913 led to the Christmas figure being determined once again as eligible to pay taxes.
But now Santa Claus has been declared to be tax exempt with that status being retroactive as of December 25, 1861. Meanwhile, the milk and cookies that he typically receives from children will be interpreted as gifts and are not necessarily going to be interpreted as income. This comes as those gifts are not guaranteed to be provided to Santa in exchange for any of the activities that he regularly enters into.
This is a stark difference from what had been utilized for the Tooth Fairy. The IRS states that the Tooth Fairy accepts goods from children in exchange for the coins that she gives them. The IRS has been attempting to collect 25 cents in back taxes from her since 1917 although developments in those efforts have been scant at best.
For more information, visit: https://fiscaltaxhelp.com
Media Contact
Company Name: Fiscal Tax Company
Contact Person: Tim Helmick
Email: Send Email
Phone: 317-897-9964
Country: United States
Website: https://fiscaltaxhelp.com
Source: www.abnewswire.com
