My question is regarding any tax liability for three gifts we gave a friend who helped my wife on an educational website she has been developing. It is intended for colleges with medical programs as a teaching aid, but for now, it is simply hope-to-be business of the future with no current sales. Nor are we registered yet with the IRS or state.

This person wanted the educational benefit she would get by helping and we rewarded her for her assistance with the three $500 gifts, one in 2014 and two in 2015, without thinking there might be tax obligations.

Do we have a tax or withholding liability here?