We ran a promotion where we gave away a vehicle. Should we issue a 1099 to the recipient?

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It appears from the write up that the winner did not pay a wager (buy a raffle ticket), but merely submitted her name to the contest and won a drawing, and that she is not providing any services in return for this prize. Provided that is the case, then yes, issue a 1099 to the winner, reporting the fair market value of the van on a 1099-MISC in box 3.

(Contest wins involving wagers are reported on a W-2G.)

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