# Award Advice – Financial Services Can Qualify For Tax Shelters Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-05-11 Category: Research Reports Category URL: https://financedigest.com/category/research-reports Meta Title: How Financial Services Awards can Help Your Business Grow Meta Description: Learn about financial services awards, how they can benefit your business, and how to apply for them to improve your financial situation. Find out more here. URL: https://financedigest.com/award-advice-financial-services-can-qualify-for-tax-sheltershtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/award-advice-financial-services-can-qualify-for-tax-shelters-1736838345949-compressed.png) A [financial services award](https://www.globalbankingandfinance.com/global-banking-finance-awards-nominations/), also called an OAS (Original Application), is a document from the United States Bureau of Labor Statistics that lists a company’s revenue and expenditures for the previous three years. The award shows how much revenue a business brought in and how much it spent on overhead and other expenses. This information is used by financial services companies as a comparison point when determining whether to grant a loan to a client. Since these awards are not taxable, they are [considered an item of income for tax](https://www.financedigest.com/3-options-to-consider-when-you-owe-the-irs-back-taxes.html "3 Options to Consider When You Owe The IRS Back Taxes") purposes. For the recipient, an award will help with debt reduction, increase their [credit score](https://www.financedigest.com/1-in-5-uk-adults-have-no-idea-what-a-credit-score-is.html "1 in 5 UK adults have no idea what a credit score is"), reduce their dependence on outside aid, and open the door to new job opportunities. Businesses can obtain these awards from three sources: the United States [Department of Commerce’s Office](https://www.financedigest.com/hundreds-of-tyson-foods-employees-to-depart-as-company-closes-offices-wsj.html "Hundreds of Tyson Foods employees to depart as company closes offices – WSJ") of Technology and Innovation, the Federal Reserve, or the Social Security Administration. These three [sources share](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html "Monte dei Paschi to have underwriting consortium for share sale by Tuesday – source") the following information about the recipient: the recipient’s date of birth, sex, and social security number if necessary; type of business (i.e. manufacturing or service); location of the business; and the amount of [revenue generated or spent each year](https://www.financedigest.com/german-tax-revenues-fall-in-august-for-first-time-this-year.html "German tax revenues fall in August for first time this year"). When completing your [financial services](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") award request online, you will need to provide the names, addresses, and social security numbers of your employees, the number of account accounts in your company, and your award amount. Once you have this information, you will be directed to a submission page where you will select your documents. Please ensure that all the documents submitted are originals. For assistance with filing your award, you may want to contact a professional lawyer. He or she can assist you in completing the appropriate forms and in submitting your award to the appropriate agency. Some of the documents required include pay stubs, [bank statements](https://www.financedigest.com/bank-of-england-statement-on-purchase-of-long-dated-bonds.html "Bank of England statement on purchase of long-dated bonds"), profit and loss statements, and tax returns. It is important to remember that these awards are not taxable. Therefore, you will not receive a refund or credit for the award. If your company receives [financial services](https://www.financedigest.com/what-can-we-learn-from-financial-services-security.html "What can we Learn from Financial Services Security?") awards in any form, they are subject to tax treatment according to the laws governing the state in which the company operates. There are several tax [rules that govern](https://www.financedigest.com/italys-rightist-government-tightens-rules-for-migrant-rescues.html "Italy’s rightist government tightens rules for migrant rescues") these awards. The Internal [Revenue Service has published tax-free statements that outline the different awards that qualify for tax](https://www.financedigest.com/adding-revenue-through-rd-tax-relief-service-2.html "Adding Revenue through R&D Tax Relief Service") treatment. Prior to selecting an award, you should obtain a [tax adviser’s](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") opinion. He or she will provide you with tax-free advice regarding the award and the [rules that apply](https://www.financedigest.com/britain-to-be-among-first-to-apply-new-climate-disclosure-rules.html "Britain to be among first to apply new climate disclosure rules") to it. The CPA typically provides a general outlook on the [company and recommends whether it is in your best interest to file for a tax](https://www.financedigest.com/exxon-sues-eu-in-move-to-block-new-windfall-tax-on-oil-companies.html "Exxon sues EU in move to block new windfall tax on oil companies") return based on the awarded share price or on its tangible assets only. The CPA can also provide you with information regarding the tax laws that apply to the [shares that you are purchasing and the shares that you are selling](https://www.financedigest.com/kuehne-raises-lufthansa-stake-to-17-5-as-germany-sells-remaining-shares.html "Kuehne raises Lufthansa stake to 17.5% as Germany sells remaining shares"). The tax adviser can [explain](https://www.financedigest.com/explainer-bracket-creep-fiscal-drag-how-inflation-warps-the-tax-take.html "Explainer-Bracket creep, fiscal drag: how inflation warps the tax take") to you how to take advantage of a tax shelter provided to you by the award. Many awards committees review the [information submitted by companies](https://www.financedigest.com/healthcare-information-systems-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Healthcare Information Systems Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") seeking awards and accept or reject the candidates. This information can be considered when the awarding committee makes their final decision. Some [services offer their clients](https://www.financedigest.com/brand-metrics-bolsters-client-services-team-as-brand-lift-measurement-booms.html "Brand Metrics bolsters client services team as brand lift measurement booms") a free report that outlines the pros and cons of each of their recommended candidates. Your award consultant can give you this report in writing or email you the report with your completed award request. Another way to get information about [financial services](https://www.financedigest.com/how-big-data-is-sending-shockwaves-through-the-financial-services-sector.html "How big data is sending shockwaves through the financial services sector") award status is through your tax professional. Your [tax advisor will help you obtain copies of the information](https://www.financedigest.com/uk-cabinet-was-not-informed-of-plans-to-scrap-top-rate-of-tax-truss-says.html "UK cabinet was not informed of plans to scrap top rate of tax, Truss says") that is required to make a decision about your award. Your tax advisor will also help you with the documentation that is required to back up your award. Your tax professional will generally not provide you with tax advice, but he or she will be able to tell you what to do if you have been [awarded a tax shelter by your employer](https://www.financedigest.com/uk-employers-see-slight-fall-in-pay-awards-over-2023-xperthr.html "UK employers see slight fall in pay awards over 2023 – XpertHR"). Your tax professional may also be able to give you a more detailed explanation of the types of [financial services](https://www.financedigest.com/boom-or-bust-how-the-financial-services-sector-is-coping.html " Boom or Bust: how the financial services sector is coping") that qualify for tax shelter status. If you are not sure what type of award you might receive from your company, you should [ask your tax](https://www.financedigest.com/uk-home-asking-prices-rise-tax-cuts-to-spur-demand-rightmove.html "UK home asking prices rise, tax cuts to spur demand: Rightmove") professional for some suggestions. He or she can usually give you a list of the types of awards that are typically given for qualifying [financial services](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") performed by employees of a company. If you have a [financial service](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") that qualifies for tax shelter status, your award will most likely be exempt from income tax. For example, you might have deducted [expenses for car](https://www.financedigest.com/top-expensive-car-brands.html "Top Expensive Car Brands") repairs from your income when you filed your income taxes. A tax specialist will help you understand whether your tax shelter award will be taxable or not. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---