The threshold for IRS mandatory reporting is $600 & above. For amounts of $599 and below reporting is not required. Some firms prefer to collect the info regardless, that way, they're covered when they take a tax deduction. Like Amy said, ALL sweepstakes winnings are taxable and you're required to report them and pay taxes on them regardless of the dollar amount. Most of us ignore this requirement for wins of $599 or less, since there is usually no 1099 issued. If you're audited & caught you'll be required to pay taxes and penalties on the amount ($200) not reported.