Reporting winners to the IRS

Answered by:

Question:

We ran a contest and no prize was over $300. We didn’t need to collect non-public private information from the winners since the prizes were small, did we?

Answer:

The IRS threshold for a 1099-MISC is $600 or more. If a winner could win twice or could win other contests at the bank the floor amount could have been met and the information would then be required.

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Learn more about Andy Zavoina’s Know Your Sweepstakes, Contests and Lotteries webinar.