Question: Mildred worked as a maid for 27 years in the home of Larry and Kay. When she retired, they presented her with a check for

Mildred worked as a maid for 27 years in the home of Larry and Kay. When she retired, they presented her with a check for $25,000, indicating that it was a way of showing their appreciation for her years of loyal service. What tax issues should Mildred and her employer consider?

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