[jebcpa]

My taxpayer is an Ambit Energy conultant. After she signed up 15 customers for Ambit Energy, Ambit Energy gives her energy rebates to reduce HER Ambit utility bills. She says this rebate reduces her energy bill by about $100+ a month. Is this rebate a form of "commission" that is taxable?

Note she is a customer of Ambit, and I think customer rebates are usually not taxable. BUT, the rebate comes from the referrals, and she paid $400 initiation to become a consultant.

Any guidance would be appreciated. Thank you. Jim

[MukatA]

Ask Ambit Energy as to how they are treating it.
If it is earned commission, it is taxable. If the rebate is based on the number of referrals, it is taxable income.
If it is discount, which is also given to many other customers who are not consultants, it is not an income.

[jebcpa]

MukatA, I agree with your idea. On their website, Ambit offers the discount to any customer that can refer 15 customers. Also, my client called Ambit, and another rep, and all said the Ambit energy rebate for referring 15 continuing customers was not taxable. So, I think it is reasonable to conclude for now that this energy rebate to reduce the consultant's bill is not taxable.
Thanks for your direction. Jim