Management Instruction (MI) FM 640-2000-1 Employer Tax Reporting Responsibilities — Conference, Meeting, and Training Session Mementos or Gifts, has been updated and renamed MI FM 640-2010-1, Postal Service Tax-Reporting Responsibilities — Event Mementos, in an effort to clarify which items may or may not be considered tax reportable.
Policy
The Postal Service™ policy on event mementos is as follows:
n Tangible personal property of less than $50 is not taxable.
n Tangible items valued at more than $50 are taxable and must be reported as taxable income.
n Items provided as supplies during the event are excluded from the taxable amount.
n Cash and cash equivalents given (to Postal Service employees only) are tax reportable in any amount.
n Nondiscretionary items (items that cannot be exchanged for cash) need not be reported if said item is valued at less than $50. If valued at more than $50, it must be reported.
n Discretionary items (items that can easily be converted to cash) should be dealt with as cash (see above).
All event sponsors must follow the procedures for tax reporting for recognition awards as set forth in subchapter 470 of the Employee and Labor Manual (ELM).
Deviations
All deviations to this policy must be sent to the manager, Assets and Payables, at Headquarters (HQ) 5 business days prior to the event.
Non–Postal Service employees
Mementos of more than $50 cannot be given to Non–Postal Service employees without prior approval from the manager, Assets and Payables, HQ. Mementos of less than $50 may be given to non–Postal Service employees and will not be reported even if said gift is “discretionary.”
Note: This MI does not cover gifts from outside sources to a U.S. Postal Service® employee.
— Assets and Payables, Finance, 6-17-10
