Tax Question

jpdeadhead

jpdeadhead

New member
I won a $11,000 (ARV) trip in 2008. I am not taking the trip until summer of 2009. I still don't have my dates confirmed and nothing has been booked. Today, I received a 1099 for $11,000. Is this legal? I haven't taken the trip yet and there haven't been any actual costs yet. The 1009 is for year 2008. HELP!! I already have a call into the fufillment company that sent me the 1099, but would like to have advice from others before I speak with them. Thanks

Grateful, Janet
 
Well, janet... you are between a rock and hard spot.

Pay a visit to a CPA before you file your taxes this year ... a CPA will help you.

OR ... you can rely on any "unprofessional" tax advice you might get here from the myriad of "arm-chair' quarterbacks who think they are tax "professionals". I haven't met anybody here who is either an Enrolled Agent, licensed to practice before the IRS ... OR ... an actual CPA. ONLY those two types of people are a proper source for reliable information and licensed to protect you in tax matters!

I know what my choice would be ....


PS: All reliable tax firms...such as H&R Block franchises are run by CPA's or Enrolled Agents
 
I agree with LB..

you really dont want to take advice from someone just because they read it somewhere. :laughing: I would call some place like H&R block and ask the person answering the phone before I would take advice from someone who's only education in taxes is that they sweep.

congrats on the trip win. I hope you can put off the taxes until next year when you have a better idea of the actual cost involved.
 
I will certaintly be talking with a tax professional. However, I was really hoping to hear from other sweepers that have won a prize in one year but didn't take possession of it until the next year and how there taxes were reported.



loren_brothers said:
Well, janet... you are between a rock and hard spot.

Pay a visit to a CPA before you file your taxes this year ... a CPA will help you.

OR ... you can rely on any "unprofessional" tax advice you might get here from the myriad of "arm-chair' quarterbacks who think they are tax "professionals". I haven't met anybody here who is either an Enrolled Agent, licensed to practice before the IRS ... OR ... an actual CPA. ONLY those two types of people are a proper source for reliable information and licensed to protect you in tax matters!

I know what my choice would be ....


PS: All reliable tax firms...such as H&R Block franchises are run by CPA's or Enrolled Agents
Click to expand...
 
You are supposed to pay taxes on a prize for the year you "receive" it, not when you win it. As good as a CPA may be, most do not have much or any experience in handling sweepstakes winnings.

Plus, you only pay taxes on what the trip actually costs not on an approximate retail value (ARV). How, can you possibly pay taxes on something that hasn't been received, hasn't even been paid for, and not yet know the actual costs of. That would be ludacrous.

I would also suggest you do not take tax advice from people such as H&R Block who are known to royally mess up people's tax returns.

I suggest you contact the sponsor and request that they reissue the 1099 for the year you actually receive the trip and "after" they know what the actual costs of the trip will be.

If the sponsor decides to be difficult about this, contact the IRS and explain the situation. They have procedures to try and get the sponsor to issue a 1099 on the actual costs/value.

Usually, these mistakes occur through the ignorance of the sponsor's accounting department.

We've encountered similar problems on several occasions before, addressed the problem with the sponsor contact, and had the 1099 changed with no problems.
 
LIDARKSIDE said:
You are supposed to pay taxes on a prize for the year you "receive" it, not when you win it. As good as a CPA may be, most do not have much or any experience in handling sweepstakes winnings.

Plus, you only pay taxes on what the trip actually costs not on an approximate retail value (ARV). How, can you possibly pay taxes on something that hasn't been received, hasn't even been paid for, and not yet know the actual costs of. That would be ludacrous.

I would also suggest you do not take tax advice from people such as H&R Block who are known to royally mess up people's tax returns.

I suggest you contact the sponsor and request that they reissue the 1099 for the year you actually receive the trip and "after" they know what the actual costs of the trip will be.

If the sponsor decides to be difficult about this, contact the IRS and explain the situation. They have procedures to try and get the sponsor to issue a 1099 on the actual costs/value.

Usually, these mistakes occur through the ignorance of the sponsor's accounting department.

We've encountered similar problems on several occasions before, addressed the problem with the sponsor contact, and had the 1099 changed with no problems.
Click to expand...

I was being facetious. calling and asking someone over the phone a question like this is as silly as taking advice from someone other than a cpa.
 
ALWAYS ALWAYS ALWAYS ask your tax questions to your tax professional. I know quite a bit about the tax code and I am sure many others have learned, through experience, but I don't have all the details to your situation to comment. I have also seen horrendous tax advice given in other forums! For instance, if you don't get a 1099 you don't have to report it. WRONG!!!!!!!

Seriously, go see someone in your area before they get too busy. If they don't have the answer, they have time to get the right one.
 
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