### Question
What does employee achievement award mean?


### Answer
**Employee achievement award** has the following meaning in *26 U.S.C. § 274*:

> 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**

