Taxation of Influencers and Name Image Likeness (NIL) Arrangements

Influencers create content, promote products, and generate followers via online channels and social media. They might receive income from brand partnerships, advertisements, products received, or other sources of income. Athletes and others may receive money, products, or other incentives for using their NIL. Although the income earned by influencers and NILs is substantial, there is little authoritative guidance on reporting their unique items of income and expenses. We do know that because NIL organizations generally benefit private interests rather than those of the general public, they typically do not qualify for tax-exempt status (PLR 202428008; GLAM 2023-004).

In addition to reportable income, influencers and NIL activities can incur costs for technology and equipment, travel, advertising, and appearance-related expenses. Tax practitioners need to understand the tax ramifications for influencers and NIL arrangements.

Listen as our panel of federal tax experts explains reporting income and expenses for influencers and NIL deals for these taxpayers and their advisers.

1. Taxation of influencers and NILs: introduction
2. Types of influencers
3. NIL agreements
4. Income

A. Product sponsored posts
B. Advertisements
C. Unsolicited receipt of products
D. Brand partnerships

5. Receipt of unsolicited products
6. Expenses
7. Hobby loss considerations
8. Reporting income and deductions
9. Other issues

The panel will review these and other critical issues:

• The categories of income frequently received by social media influencers and their tax consequences
• Tax implications of receipt of unsolicited and promotional products by influencers
• Allowable deductions often incurred by influencers and the use of NIL
• Common clauses in NIL agreements
• How hobby loss rules could impact influencers

Learning Objectives

After completing this course, you will be able to:

• Identify types of influencers
• Determine how the hobby loss rules could impact influencers
• Decide what categories of income are frequently received by influencers and their tax consequences
• Ascertain deductible expenses frequently incurred by social media influencers

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).