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Can I offer contests that involve referral bonuses in Maryland? What are the requirements?
Based on the information provided in the context documents, it appears that offering contests that involve referral bonuses in Maryland may be subject to certain requirements.
Requirements for Offering Contests with Referral Bonuses in Maryland
Maryland has laws that prohibit kickbacks for business referrals involving a federally related mortgage loan [1]([1]). However, it is unclear whether these laws apply to referral bonuses in contests.
Additionally, if the prize or award received in a contest is goods or services, the fair market value (FMV) of the goods or services must be included in the winner’s income for tax purposes [2]([2]).
Conclusion
It is unclear whether there are specific requirements for offering contests with referral bonuses in Maryland. It is recommended that you consult with a legal professional to ensure compliance with any applicable laws and regulations.
Source(s):
- [1] The questions and answers below pertain to compliance with the …
- [2] Publication 525 (2022), Taxable and Nontaxable Income | Internal …
Jurisdiction
Maryland