State of Virginia. Employee earns an award trip for surpassing a sales goal in calendar year 2018. The actual trip is in February of 2019. The employer booked the flights and paid the resort in calendar year 2018. The employer is including the cost of the award trip as taxable income on the Employee's 2018 W2. I think this is incorrect based on Publication 525 (see below) language and link.
1.) Should the income be reflected on the employee's 2018 or the 2019 W2?
2.) What is the best way to get a confirmation from the IRS regarding this question?
"Bonuses and awards. Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. These include prizes such as vacation trips for meeting sales goals. If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. However, if your employer merely promises to pay you a bonus or award at some future time, it isn’t taxable until you receive it or it is made available to you."
Publication 525 2017 (2018 version not available yet)
1.) Should the income be reflected on the employee's 2018 or the 2019 W2?
2.) What is the best way to get a confirmation from the IRS regarding this question?
"Bonuses and awards. Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. These include prizes such as vacation trips for meeting sales goals. If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. However, if your employer merely promises to pay you a bonus or award at some future time, it isn’t taxable until you receive it or it is made available to you."
Publication 525 2017 (2018 version not available yet)