### Question
How is the term employee achievement award defined?


### Answer
The term **employee achievement award** is defined in *26 U.S.C. § 274* as the following:

> an item of tangible personal property which is—


(I) transferred by an employer to an employee for length of service achievement or safety achievement,


(II) awarded as part of a meaningful presentation, and


(III) awarded under conditions and circumstances that do not create a significant likelihood of the payment of disguised compensation

#### Citation:
  - *26 U.S.C. § 274*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

