Question: We want to have a raffle and award a prize. It will be open to "everyone" to avoid being a lottery. What prize amounts are considered income and are then reportable to the IRS?
Answer: This answer is actually two-fold. First, if you pay $600 or more it is reportable by you to the IRS on a 1099-MISC. The IRS instructions are online.
Second, it is all income for the winner whether or not it is reportable by you. They should include it as income even when you do not have to report it. Verifying that they do is not your responsibility.
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