- 9 - 363 U.S. 278, 285 (1960); Williams v. Commissioner, supra. The transferor’s intention is the most critical consideration for this inquiry. Duberstein v. Commissioner, supra at 285. The transferor’s own characterization of the payment, however, is not determinative. Id. at 285-286. There must be an objective inquiry as to whether the payment is really a gift. Id. Payments from an employer to an employee may still be income to the employee even when the two share a close friendship. Williams v. Commissioner, supra. Also, payments between an employer and an employee may be income when the employer provides neither a Form W-2 nor a Form 1099-MISC and fails to withhold tax on those payments. Leschke v. Commissioner, T.C. Memo. 2001-18. Nevertheless, a payment between an employer and an employee may be a gift when the relationship between the employer and the employee is personal and unrelated to work. Caglia v. Commissioner, T.C. Memo. 1989-143; Harrington v. Commissioner, T.C. Memo. 1958-194. The personal relationship may be indicated by after-work social interactions or activities such as gambling trips. See Caglia v. Commissioner, supra; Harrington v. Commissioner, supra. Mr. Hoiland rewarded petitioner’s performance as an officer and employee of PCI with promotions and raises. Mr. Hoiland arranged to give petitioner the $160,000 payment after she turned down a $20,000 raise and an offer of a home and an automobile.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008