1) Luna owns a restaurant named Stellar Sandwiches that employs 15 workers whose income is subject to FICA tax withholding. All of the employees receive tips and Luna is unsure whether she needs to withhold FICA taxes on these wages from her employees.

Which section and subsection of the Internal Revenue Code will provide guidance to Luna regarding the withholding on her employees' tips?

2) EPM Brew Inc, was formed August 25, 2021, with stock owned by Luna, Leo, Maci, and Brandi (Macis niece) with 22%, 24%, 29%, and 25% ownership percentages, respectively. EPMs VP of Marketing would like to provide a gift of display racks with EPMs logo to a few retailers of EPMs products and has approached the Director of Corporate Tax to determine whether the gifts are fully tax deductible.

Which section of the Internal Revenue Code best determines whether certain gifts of promotional equipment are deductible?