Include Bus card w/1099-misc

[AZ-Tax]

I was curious. We are mailing out 1099-misc's to one of our clients independent contractors. Would it be professional to drop my tax preparer business card in the envelope? Would anyone know the legality of this for I could not locate anything.

[Jiggers]

I was curious. We are mailing out 1099-misc's to one of our clients independent contractors. Would it be professional to drop my tax preparer business card in the envelope? Would anyone know the legality of this for I could not locate anything.

I wouldn't do this. Wouldn't you be disclosing to this person that you have the issuer as a client?

[ToledoEd]

I would and have. I open a lot of envelopes that have HR Block and Jackson Hewit coupons in them so why not. I do think that you need to ask the person for whom you are completing the 1099s or W2's for permission. It is actually thier mail not yours.

[ToddFogelberg]

1099s

I print the client's return address on the 1099 envelopes so the recipients have no idea that I am involved. I'v thought of the idea to include coupons but decided against it for the reason of client confidentiality.

[Uncle Sam]

Using Client Business Relationships to Solicit

Don't you think that's unethical?
Are you that desperate for their business that you'd use a client's
business contacts to promote yourself?
Your client values privacy. You should value your client - not yourself.

The street front tax prep factories are large corporate giants that have
money for impersonal professionally designed advertising - YOU DON'T.

[taxea]

I print the client's return address on the 1099 envelopes so the recipients have no idea that I am involved. I'v thought of the idea to include coupons but decided against it for the reason of client confidentiality.

I agree. There is a confidentiality issue here for sure. Would this issue exist if you sent your business card in a separate solicitation letter and paid for the postage out of your company funds rather than have your client pay your business expenses for advertising. At any case, I am still not sure it wouldnt be a misuse of information provided by your client confidentiallly to you. Why not just give cards to your client and ask him to hand them out to his workers.

[taxtimeagain]

MRS Issue 12-0001531 – Prohibited Practitioner Advertising
Issue: Practitioner advertising is prohibited on Forms W-2 and other information returns (reference Rev Proc 2011-62 and Publication 1141), but are there restrictions on including practitioner advertising with Forms W-2 and other information returns?

Response: No additional enclosures, such as advertising, promotional material, or a quarterly or annual report, are permitted. Even a sentence or two on the year-end statement describing new services offered by the payer is not permitted. Logos, slogans and advertising may be used on any permissible enclosure such as a check or account statement, other than information returns and payee copies. See the general instructions of the information return for a list of permissible enclosures.

[taxea]

The only thing in a W2 mailing should be the W2. Cir 230 prohibits advertising, discount, gift cards, etc. I don't think a business card would be considered anything other than a solicitation for business

[JohnH]

Really? What about those W-2 forms printed with discount coupons for tax prep at the major chains? How did this circular 230 "violation" get past their high-priced legal departments?

[BP.]

Really? What about those W-2 forms printed with discount coupons for tax prep at the major chains? How did this circular 230 "violation" get past their high-priced legal departments?

Agree! I have had to detach franchise coupons from the W-2.

[Roberts]

Really? What about those W-2 forms printed with discount coupons for tax prep at the major chains? How did this circular 230 "violation" get past their high-priced legal departments?

Honestly I've yet to see this coupon but I've seen promotional items included with 1099 DIV and INTs. Some of the mutual fund companies have 1099 DIVs that are hard to even find with all the other information they are blasting at you on the forms. I'll have to pay attention to this more going forward.

[FEDUKE404]

Sounds like NO advertising ??

IMRS Issue 12-0001531 – Prohibited Practitioner Advertising

Issue: Practitioner advertising is prohibited on Forms W-2 and other information returns (reference Rev Proc 2011-62 and Publication 1141), but are there restrictions on including practitioner advertising with Forms W-2 and other information returns?

Response: No additional enclosures, such as advertising, promotional material, or a quarterly or annual report, are permitted. Even a sentence or two on the year-end statement describing new services offered by the payer is not permitted. Logos, slogans and advertising may be used on any permissible enclosure such as a check or account statement, other than information returns and payee copies. See the general instructions of the information return for a list of permissible enclosures.

As indicated in Sections 1.3.1 and 5.1.3, of this revenue procedure, Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, 1042-S, and 8935 are subject to annual review and possible change. If you have comments about the restrictions on including logos, slogans, and advertising on information returns and payee copies, send or email your comments to: Internal Revenue Service, Attn: Substitute Forms Program, SE:W:CAR:MP:T:M:S, 1111 Constitution Avenue, NW, Room 6526, Washington, DC 20224 or substitute forms@irs.gov


I guess those lawyers can figure it all out....


FE

[JohnH]

Honestly I've yet to see this coupon but I've seen promotional items included with 1099 DIV and INTs. Some of the mutual fund companies have 1099 DIVs that are hard to even find with all the other information they are blasting at you on the forms. I'll have to pay attention to this more going forward.

Next time I see one, I'll try to remember to scan it and post it here (without client confidentail info, of course).

[taxea]

Really? What about those W-2 forms printed with discount coupons for tax prep at the major chains? How did this circular 230 "violation" get past their high-priced legal departments?

Just because they do it doesn't make it legal to do it. I don't know how they get away with it but I would turn them in.

[Black Bart]

...If you have comments about the restrictions on including logos, slogans, and advertising on information returns and payee copies, send or email your comments to: Internal Revenue Service, Attn: Substitute Forms Program, SE:W:CAR:MP:T:M:S, 1111 Constitution Avenue, NW, Room 6526, Washington, DC 20224 or substitute forms@irs.gov

Speaking of ethics and since IRS feels putting a business card in with a W2 is a lapse of same, I'd like to tell them what I think about their selling our names, addresses, email adresses, and phone numbers to telemarketers.

Okay, no; I don't know if they actually sell them or if TMs get them by FOI, but there ought to be some way to protect our information.