Tax Reporting
Prizes are taxable income for winners, and sponsors have reporting obligations. We collect what's needed during verification and handle the year-end forms.
What's included
- W-9 collection during winner verification
- Documentation of each prize's approximate retail value
- 1099-MISC preparation for winners who meet the IRS threshold
- Filing with the IRS by the required deadline
- Copies sent to each winner
- A year-end summary for your accounting team
How it works
- CollectWe get a completed W-9 from each winner before the prize is released.
- PrepareAt year end, we prepare 1099-MISC forms for every prize that meets the threshold.
- File and sendWe file with the IRS and send each winner their copy.
Non-cash prizes count too
Winners owe tax on the approximate retail value of a prize even when it isn't cash, such as a trip or a car. Your rules should say this clearly.
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