Current Deduction for Shopper Rewards

A supermarket chain that gave shoppers “Fuelperks!”, a limited-time promotion, could deduct them when earned, rather than when redeemed. A federal appellate court, reversing the Tax Court, concluded that the “all events test” was met for the promised discount on gas because the obligation was fixed. The company tracked customer redemptions and used historical averages to determine claimed deductions rather than basing deductions on actual redemptions.