We awarded a non-employee a trip for four as a prize from a Facebook contest. We paid airfare, hotel, car service and food at a banquet. Is this reportable?

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Yes, the fair market value of the prize, which comprises the airfare, hotel, car service and food provided, is reportable.  Use form 1099-MISC, box 3. This was confirmed by IRS information reporting specialist Ms. Tennett (ID#1001307512).

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