We're having a contest for which the prize is a car. Our sponsor actually provides the car, so should they handle the 1099 reporting, or are we responsible?

Follow

It depends on the details of the transaction. If the sponsor is providing the car directly to the winner, then the sponsor is responsible for handling the 1099. If the sponsor provided the car to your organization, and your organization is signing the car over to the winner, then you are responsible for the 1099. This was confirmed by IRS Information Reporting Specialist Ms. Higgins, ID# 1002956963.

Have more questions? Submit a request

Comments