1099 reporting for prizes
March 1, 2019
Q. Should gifts received from companies which are passed along as prizes for subscribed user accounts need to be considered for 1099 reporting? If so, how is the value of the gift determined?
If the fair market value of the gift meets or exceeds the aggregated $600 threshold, and the recipient is not exempt, the amount is reportable. The issue that generally arises in these situations is which entity has the reporting obligation: the company that provided the gift, or the company that…
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