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View Full Version : YIKES .. Eprize sent wrong 1099-MISC


Puddy
February 4th, 2006, 4:46pm
I just rec'd in the mail a 1099 form for 2005 in the amount of $1000.00 ... BUT ... I won the money in 2004 and last year I was sent a 1099 form. Now what? I tried calling them but it is the weekend and I guess no one is there. OH NO ..this is going to screw up my taxes.

HELP

:mad2: :mad2: :mad2: :mad2: :mad2:

tupik3702
February 4th, 2006, 4:51pm
Good LUck! :supstar:

KRSchulze
February 4th, 2006, 4:56pm
Gosh, a sweeper's nightmare! Hope you can get it fixed Monday morning!

lamona
February 4th, 2006, 4:57pm
Puddy - I have the exact same problem!!

I won $1000 from the Columbia House Instant Win in 2004. The check is dated 12/31/2004. I rec'd it at the beginning of January 2005. I also got a 1099 the first week of Feb 2005 for $1000. I just got another 1099 for $1000 yesterday. Eeeek!

I was going to send them an e-mail. If you get an answer before I do, would you mind letting me know? Thanks!!

Jessica

coljim
February 4th, 2006, 5:09pm
That makes at least three wrong ePrize 1099's.
http://www.online-sweepstakes.com/forums/showthread.php?t=370062
Wonder what they'll surprise me with? It sounds like a big, big mess.

donnamc
February 4th, 2006, 5:22pm
O My Lord That Is Awfull Somebody Hasnt Got Their Act Together. That Would Be Terrible :sherlock:

Puddy
February 4th, 2006, 5:26pm
Puddy - I have the exact same problem!!

I won $1000 from the Columbia House Instant Win in 2004. The check is dated 12/31/2004. I rec'd it at the beginning of January 2005. I also got a 1099 the first week of Feb 2005 for $1000. I just got another 1099 for $1000 yesterday. Eeeek!

I was going to send them an e-mail. If you get an answer before I do, would you mind letting me know? Thanks!!

Jessica


That is the same prize I won .. and my check was also dated 12/31/2004

If I hear anything I will let you know and if you hear anything please let me know.

Grrrrrrrrrr

eprize toll free number .. 1-877-837-7493

jjarvis
February 4th, 2006, 5:38pm
Puddy - I have the exact same problem!!

I won $1000 from the Columbia House Instant Win in 2004. The check is dated 12/31/2004. I rec'd it at the beginning of January 2005. I also got a 1099 the first week of Feb 2005 for $1000. I just got another 1099 for $1000 yesterday. Eeeek!

I was going to send them an e-mail. If you get an answer before I do, would you mind letting me know? Thanks!!

Jessica


Could you tell me if they put your win amount in box 7 or box 3 of the 1099-MISC? I received a 1099-MISC from Dollar Rent-a-Car and I think it is filled out incorrectly. :sherlock:

Puddy
February 4th, 2006, 5:40pm
Could you tell me if they put your win amount in box 7 or box 3 of the 1099-MISC? I received a 1099-MISC from Dollar Rent-a-Car and I think it is filled out incorrectly. :sherlock:

On my 1099 .. it was put in box 3

jjarvis
February 4th, 2006, 5:43pm
On my 1099 .. it was put in box 3


That is where I thought it should have been, but they put the amount in box 7 for non-employee compensation. I e-mailed them and asked to have their accountant contact me since the back of the form indicates that box 3 is for prize wins. :frown3:

UPDATE: The company is sending me a corrected form with the amount in the correct box...in box 3. :smile9:

wackydackydoo
February 4th, 2006, 5:55pm
Don't overthink it. If you received a 1099 on it last year and paid your taxes on it, the IRS isn't going to give you flack over it since it's been reported already and you have the documentation to back it up.

bkstar
February 4th, 2006, 6:02pm
They do have to do corrections. I do my 1099's for the company I work for and if there is errors that are caused by us - we do have to do corrections to notify the IRS. When we print 1099's - we also (which all companies have to do) is send and electronic file with all the 1099's out to the IRS.

So contact them on Monday and make sure that they correct it. It sounds like they ran the wrong years 1099's out of the system. It wouldn't surprise me if there are more people out there with the same problem.

Bk

suelee000
February 4th, 2006, 6:10pm
Actually if you received the prize in 2005, you should have pay tax on this year's taxes not last year's. It doesn't matter when the check is dated.

bluenude3
February 4th, 2006, 6:20pm
Could you tell me if they put your win amount in box 7 or box 3 of the 1099-MISC? I received a 1099-MISC from Dollar Rent-a-Car and I think it is filled out incorrectly. :sherlock:


I also got one where they put the amt in box 7... :worry: Made 2 phone calls w/ 2 messages today regarding 1099s. One was for a hugely inflated ARV (TV from TV Guide sweep - official rules list ARV as $595 - which is overstated - then they sent out a 1099 for $1100 - WHATEVER!) and the second was for that Box 7 instead of Box 3. If its in Box 7 (and its correct) then you are supposed to fill out additional paperwork for being self employed. Sigh... I love tax time!

Simone

Sweeper2
February 4th, 2006, 6:25pm
Just wondering why it would matter which box it was in on the 1099? For your tax purposes it is Income either way!

jellosheriff
February 4th, 2006, 6:27pm
Any chance that one of your 1099s is marked "corrected?"

jjarvis
February 4th, 2006, 6:38pm
Just wondering why it would matter which box it was in on the 1099? For your tax purposes it is Income either way!


Box 3 is suppose to be for prizes, awards, inheritances, etc. Amounts in box 7 are considered self-employment income and Medicare and SS taxes usually are to be paid on that amount. :worry:

venus_de_milo
February 4th, 2006, 6:47pm
I had to get a corrected 1099 last year for a box 3/box 7 issue (not from ePrize though). The last thing I wanted was to have to convince the IRS that no, I was not employed by the judging agency, LOL! Good luck getting it corrected.

jjarvis
February 4th, 2006, 7:38pm
A person would think that these large corporations would have accounting departments that can read the instructions for the forms. :frown3:

Sweethart79
February 4th, 2006, 8:36pm
I have yet to even get mine from eprize...go figure :rolleyes:

remo28
February 4th, 2006, 8:52pm
Be afraid when you do get it then.

I just hope finding out where the mistakes are isn't a huge giant headache. I got a $2200+ 1099 from ePrize. But all my ePrize wins from last year don't equal that much. That on top of a $750+ 1099 form (which I was fully expecting). So I'm a bit worried about what I'm going to hear when I do contact them about the mysterious $2200+ 1099. I'm just crossing my fingers that it's not a huge ordeal to find out what happened. I'd like to send my taxes off ASAP so I can get my refund. But now, because of this, I can't.

Sweethart79
February 4th, 2006, 11:13pm
Be afraid when you do get it then.

I just hope finding out where the mistakes are isn't a huge giant headache. I got a $2200+ 1099 from ePrize. But all my ePrize wins from last year don't equal that much. That on top of a $750+ 1099 form (which I was fully expecting). So I'm a bit worried about what I'm going to hear when I do contact them about the mysterious $2200+ 1099. I'm just crossing my fingers that it's not a huge ordeal to find out what happened. I'd like to send my taxes off ASAP so I can get my refund. But now, because of this, I can't.


Even if that were the case, they cant just "total" all your prizes and send you a 1099. Because the tax credit goes to the company sponsoring the promo...not eprize. Secondly you never signed an affy with your SSN therefore they cannot issue the 1099 it is YOUR responsibility to take care of it on your end...they would have nothing to do with it. I hope you get some answers. I dont need the 1099 to file my taxes because it was a straight up check for 9k. I'm kind of thinking after everything I went thru with them trying to get my prize (my 6-8 weeks turned into 6-8 months!) mine might have fallen thru the cracks. :laugh: But I will still claim it even if I dont get the 1099 :halo:

remo28
February 4th, 2006, 11:29pm
I also wondered about the tax thing. The 1099 that I expected for $750 was from ePrize. But the sweeps was from a mortgage company. So how does it work that ePrize sends the 1099 out? Does the sponser just give ePrize the cash/prizes and let them deal with it, then just write their taxes stuff as contest stuff to ePrize, then ePrize itemizes it? When I got the check for $750 it was a check from ePrize, not from the mortgage company that I won from.

I think this is just going to drive me nutty until I get a hold of someone on Monday and get some answers.

kakes
February 4th, 2006, 11:32pm
Don't overthink it. If you received a 1099 on it last year and paid your taxes on it, the IRS isn't going to give you flack over it since it's been reported already and you have the documentation to back it up.

I agree.. don't :sweat:it

remo28
February 4th, 2006, 11:37pm
Secondly you never signed an affy with your SSN therefore they cannot issue the 1099 it is YOUR responsibility to take care of it on your end...they would have nothing to do with it.

Okay how would they have nothing to do with it? They already sent a 1099, IMO they have everything to do with it. They are the ones that can make the corrected 1099 form, not me. They are the ones that may have tried to tax me for someone elses win. Yes I need to get on the phone with them and find out what happened. But ultimately I need them to correct their 1099 so the IRS has the correct info. And yes the 1099 has all my correct info on it, name, address ans SSN are all correct.

I'm just wondering why you say they have nothing to do with it? It seems to me they have everything to do with it.

jankelley
February 4th, 2006, 11:47pm
OMG I just received the most amazing 1099 I have ever seen-- from Real Networks--- for "recipients ID number" it gave the first three digits of my Social Security number and the last seven digits of my phone number!! It gets better---- in box #5 the prize amount appears-- under "fishing boat proceeds." It was a trip to New York City!!
Sounds damn fishy to me!!!!!!!!!!! :worry: :worry:

InkyPrincess
February 4th, 2006, 11:55pm
I also got one where they put the amt in box 7... :worry: Made 2 phone calls w/ 2 messages today regarding 1099s. One was for a hugely inflated ARV (TV from TV Guide sweep - official rules list ARV as $595 - which is overstated - then they sent out a 1099 for $1100 - WHATEVER!) and the second was for that Box 7 instead of Box 3. If its in Box 7 (and its correct) then you are supposed to fill out additional paperwork for being self employed. Sigh... I love tax time!

Simone

Woah, I won that tv also, but I didn't receive a 1099. When did you receive the 1099 and does it actually say its for tv?

jewelsee
February 5th, 2006, 12:02am
They did not ask for SS# for the TV Guide TV.

Sweethart79
February 5th, 2006, 12:09am
Okay how would they have nothing to do with it? They already sent a 1099, IMO they have everything to do with it. They are the ones that can make the corrected 1099 form, not me. They are the ones that may have tried to tax me for someone elses win. Yes I need to get on the phone with them and find out what happened. But ultimately I need them to correct their 1099 so the IRS has the correct info. And yes the 1099 has all my correct info on it, name, address ans SSN are all correct.

I'm just wondering why you say they have nothing to do with it? It seems to me they have everything to do with it.


I was saying that in reference to prizes under 600 for which you did not sign an affy. What they are doing is paper work on behalf of the company that gave you the prize...eprize=middle man...nothing more. What I'm saying is lets say I win something worth 10 bucks from nestle and something worth 100 from ford and another prize from woman's day magazine for 90 bucks. What I'm saying is eprize isn't going to send me one lump sum 1099 for 250 bucks. They cant do it. If you did not give them your ssn for the prizes then they cannot issue an affy for it they are leaving it up to YOU to file the claim. Further more they cannot lump many wins from different sponsors together into one 1099. Its not eprize that gets the "tax credit" from these things it the sponsor (ford, nestle and so on) Follow me? You took what I said out of context and if you read what I said again in its entirety you will see why I said what I said and what I was referring to.

Sweethart79
February 5th, 2006, 12:13am
I also wondered about the tax thing. The 1099 that I expected for $750 was from ePrize. But the sweeps was from a mortgage company. So how does it work that ePrize sends the 1099 out? Does the sponser just give ePrize the cash/prizes and let them deal with it, then just write their taxes stuff as contest stuff to ePrize, then ePrize itemizes it? When I got the check for $750 it was a check from ePrize, not from the mortgage company that I won from.

I think this is just going to drive me nutty until I get a hold of someone on Monday and get some answers.


To answer your question. Eprize is just the middle man. The mortgage company paid the money to eprize for the prizes plus a fee for running the promo and handling all the paperwork. Eprize sends the 1099 to you on behalf of the company and sends the paperwork to the IRS on behalf of the company. Eprize is just a service/middle man.

taterbug
February 5th, 2006, 12:21am
I also wondered about the tax thing. The 1099 that I expected for $750 was from ePrize. But the sweeps was from a mortgage company. So how does it work that ePrize sends the 1099 out? Does the sponser just give ePrize the cash/prizes and let them deal with it, then just write their taxes stuff as contest stuff to ePrize, then ePrize itemizes it? When I got the check for $750 it was a check from ePrize, not from the mortgage company that I won from.

I think this is just going to drive me nutty until I get a hold of someone on Monday and get some answers.
I won $750 too (not the same sweeps as yours). I got the check from ePrize and have not received a 1099 from anyone. I have already filed my taxes and just listed/claimed it as a sweeps win from ePrize.

remo28
February 5th, 2006, 12:25am
Okay I do see what you are saying. I just hope I can get it straightened out quickly. I would have remembered $2200 win and I KNOW I never signed an affy for that. I just worry that it will be a big PITA.

Sweethart79
February 5th, 2006, 12:38am
Okay I do see what you are saying. I just hope I can get it straightened out quickly. I would have remembered $2200 win and I KNOW I never signed an affy for that. I just worry that it will be a big PITA.


PITA? Thats a given...I mean this IS eprize we're talking about :laugh: Just be persistant and file what you KNOW is right. you will be fine. If you signed nothing they are the ones that have the burden of proof with the IRS. :)

autonomous
February 5th, 2006, 12:41am
Lots of bad reviews for ePrize lately. I wouldn't be as unqualified thrilled about winning from them anymore. :frown3:

Sweethart79
February 5th, 2006, 12:44am
Since eprize seems to have made a major BOO BOO this year, I'm gonna put this out there...


If you get my 1099...PM me and let me know :laugh:

Mythadical
February 5th, 2006, 1:02am
Be afraid when you do get it then.

I just hope finding out where the mistakes are isn't a huge giant headache. I got a $2200+ 1099 from ePrize. But all my ePrize wins from last year don't equal that much. That on top of a $750+ 1099 form (which I was fully expecting). So I'm a bit worried about what I'm going to hear when I do contact them about the mysterious $2200+ 1099. I'm just crossing my fingers that it's not a huge ordeal to find out what happened. I'd like to send my taxes off ASAP so I can get my refund. But now, because of this, I can't.

Cant you just go ahead and file your taxes using the 1099 for the $750. that you know is right and work on eprize with the other one until you get it staightened out? You could always ammend if you needed to. Just an idea :gvibes:

tofu
February 5th, 2006, 1:22am
Hey, anybody get my ePrize 1099? It might be anywhere from $2000 to $3500, depending on how much the trip cost them. I sure haven't seen it yet! :laugh:

I have a suspicion they'll be busy sending out corrected 1099s next week, so prize delivery might slow down a touch (more). :laugh:

coljim
February 5th, 2006, 1:44am
I'm still waiting for mine too. No news is good news when it's not from ePrize today. Argh.

Sweeper2
February 5th, 2006, 9:17am
What determines where your 1099 comes from? I won a trip from an Eprize administered sweepstakes and they sent me my information. The trip was arranged by an outside travel agency. My 1099 came from the Sponsor of the Sweepstakes.

Tinkerbell
February 5th, 2006, 9:32am
What determines where your 1099 comes from? I won a trip from an Eprize administered sweepstakes and they sent me my information. The trip was arranged by an outside travel agency. My 1099 came from the Sponsor of the Sweepstakes.

Sweeper2- good question. Yesterday I got a 1099 from Eprize. I was thinking I would get it from the sponsor. But the amount is correct, so I can file now. But it is interesting how some are getting 1099's from Eprize, and some direct from the sponsors.

sallykay
February 5th, 2006, 1:10pm
A 1099 is not the same thing as a W2. Just because you get a "wrong" 1099 doesn't mean that 1099 conttrols what you do with your taxes.

Some people say, get it corrected. I say, that's a headache, forget it and do your taxes, and use the correct figures as to your records.

Just because the "wrong" 1099 shows your win in the "self employment" box doesn't mean you are self employed, for goodness sakes.

Just check with your tax accoutant.

jjarvis
February 5th, 2006, 1:33pm
A 1099 is not the same thing as a W2. Just because you get a "wrong" 1099 doesn't mean that 1099 conttrols what you do with your taxes.

Some people say, get it corrected. I say, that's a headache, forget it and do your taxes, and use the correct figures as to your records.

Just because the "wrong" 1099 shows your win in the "self employment" box doesn't mean you are self employed, for goodness sakes.

Just check with your tax accoutant.


It is good to have a correct document though, because it seems a tax audit would be more of a headache than trying to get a corrected 1099. It irks me that these large corporations do not have competent accountants. :toot:

Puddy
February 6th, 2006, 10:26am
I rec'd a reply from my email to them ...


"Thank you for contacting us regarding the Columbia House Joy of Giving promotion. Your question is very important to us.

The 1099 you received is for the $1,000 check you were issued in May 2005 for your win in the Columbia House Joy of Giving. The Official rules are attached for your reference. Per the affidavit you signed, you are required to claim this prize when you file your taxes.

Should you need any additional clarification, or have any other questions regarding this promotion, please do not hesitate to contact us directly.

Thanks,
ePrize Customer Service"


I also just called them .. I think speaking to a person instead of emails would be better but I was told (by the person answering the phones) to leave a detail message because all of customer service is busy trying to review the 1099s. Hmmm sounds like they release they have a problem.

I rec'd the check in Jan 2005 .. but it was dated 12/31/2004 so there is no way a check was issued to me in MAY .. 4 mths later. If they are willing to send me another $1000.00 then I will gladly pay the taxes again. LOL

remo28
February 6th, 2006, 3:19pm
I left a voice mail over the weekend. I got a reply in my e-mail saying my 1099 was from the mortgage sweeps I won. And they even sent me a copy of the rules. So I called again. I was also directed to leave a detailed voice message, which I did. Then I replied to their e-mail stating that yes I got the mortgage sweeps 1099, that is fine and correct. BUT I got a second 1099 for $2246.37 (anyone here looking for that amount???) which I never won anything at that amount (or anywhere near it).

I want to know it's going to be fixed before I file. Just for my own peace of mind. DHs coworkers wife is an accountant, so I might ask him to ask her about it. But we e-file online since we really don't make that much (or win that much) to feel we need to hire out. We had H&R Block do it before, but we're getting the same results e-filing.

Tarah716
February 6th, 2006, 3:28pm
*gulp* I've been reading too many screw ups with e-prize, i'm still waiting on my 1099 for my trip. *paces* I hate tax time!

bjdotson
February 6th, 2006, 3:42pm
I just got a combined 1099 from two different wins from two different Sponsers. They used the same agency. Yes they can do that; it depends on the contract between them and the sponsers.

As to the advice to just add the amount to your taxes if they put it on the wrong box, WRONG. A couple of years ago there was a thread where a olser did just that and got charged penalties and interest because she didn't pay the social security.

Make them fix it.

tofu
February 6th, 2006, 3:47pm
I tried to call ePrize today to ask about my missing 1099, and whether or not I'd actually be getting one this year (since I won the trip last summer, but I am going in about 12 days - don't want to assume next year and then be wrong).

I didn't get a human, though, it rolled straight over to "leave a detailed message" voice mail! They also haven't responded yet to the e-mail I sent last week. They MUST be swamped!!

On a happy note, though, I did get a 1099 for my other 2005 big win, and they adjusted it down by $500 so now it reads $1500 instead of the $2000 ARV - yay (by my research, the $1500 is the correct amount)! That wasn't from ePrize, though.

hare2Win
February 6th, 2006, 3:49pm
A 1099 is not the same thing as a W2. Just because you get a "wrong" 1099 doesn't mean that 1099 conttrols what you do with your taxes.

Some people say, get it corrected. I say, that's a headache, forget it and do your taxes, and use the correct figures as to your records.

Just because the "wrong" 1099 shows your win in the "self employment" box doesn't mean you are self employed, for goodness sakes.

Just check with your tax accoutant.


This is incorrect. You do need them to send a corrected 1099. Especially if the amount is reported in box 7. If you don't pay the 15+% self-employment tax you WILL be hearing from the IRS. They will expect the SE tax + penalty & interest. I know other sweepers this has happened to. And it can turn into a nightmare esp. if the sponsor or judging agency isn't around to come to your defense in 3 years when you get audited.

djr58
February 6th, 2006, 4:01pm
Thanks to all of you for posting information about these things, otherwise I never would have known! I received a 1099 for the 75,000 Delta skymiles I won and sure enough, the amount is listed in Box 7.
I just sent an e-mail to the contact person and hopeefully this will be corrected soon. I let her know that I can't properly file my taxes until it is.

sallykay
February 6th, 2006, 4:26pm
This is incorrect. You do need them to send a corrected 1099. Especially if the amount is reported in box 7. If you don't pay the 15+% self-employment tax you WILL be hearing from the IRS. They will expect the SE tax + penalty & interest. I know other sweepers this has happened to. And it can turn into a nightmare esp. if the sponsor or judging agency isn't around to come to your defense in 3 years when you get audited.

We have been running businesses for over 2 decades, and I cannot tell you the number of incorrect 1099s we have received. Not once have I had one corrected, and not once have we been audited.

If you are self employed you file a Schedule C, or whichever one applies to you. If you are not self employed you don't file one. If you get an incorrect 1099 that says you made self employment income, that does not make it so.

Fine, try to get it corrected if you want. I'm no tax expert, but I do have tax accountants, and many years of experience when it comes to dealing with such forms.

suelee000
February 6th, 2006, 4:34pm
I tried to call ePrize today to ask about my missing 1099, and whether or not I'd actually be getting one this year (since I won the trip last summer, but I am going in about 12 days - don't want to assume next year and then be wrong).

I didn't get a human, though, it rolled straight over to "leave a detailed message" voice mail! They also haven't responded yet to the e-mail I sent last week. They MUST be swamped!!

On a happy note, though, I did get a 1099 for my other 2005 big win, and they adjusted it down by $500 so now it reads $1500 instead of the $2000 ARV - yay (by my research, the $1500 is the correct amount)! That wasn't from ePrize, though.

You pay taxes on a trip that you take THIS year, next year. When you won it is immaterial, it's the year that you receive it.

djr58
February 6th, 2006, 6:13pm
I just received a reply to the e-mail I sent the contest sponsor. It actually was forwarded to their Accounts Payable Department. It reads, in part, "....I handled the 1099 form that was sent out to you. You are correct. The amount was put in the wrong place and needs to be corrected."

I have to send the form back to them to correct and will do so tomorrow.
Very quick and polite response. They also were wonderful to deal with when I won the prize!

remo28
February 7th, 2006, 6:02pm
Has anyone with 1099 problems with ePrize heard anything yet? I had no reply to my e-mail and have heard NOTHING from them yet. At leat a 'we're checking into it' would be nice.

Puddy
February 8th, 2006, 3:19am
Since their frist reply to me I haven't heard a thing. I had sent them 2 follow up emails and no reply as of yet. Grrrrr

I think my next move will be to contact Columbia House because if they sent me a double 1099 form that will screw my taxes up it will also mess up Columbia House's taxes.

dentwil
February 8th, 2006, 8:59am
I'm still waiting on two forms. I didn't know if there was a deadline as to when the companies have to send the forms. Any input from you knowledgable sweepers or tax people would be greatly appreciated.

Sweethart79
February 8th, 2006, 9:15am
I'm still waiting on two forms. I didn't know if there was a deadline as to when the companies have to send the forms. Any input from you knowledgable sweepers or tax people would be greatly appreciated.


I thought it was Jan 31 (same as w-2's) but someone else posted that it was feb 15. So I'm not sure.

I have yet to receive my 1099 from eprize.

Someone said that you need to submit the 1099 with your tax forms when you file yet I was told that no you dont. Anyone know the REAL answer? I was just going to go ahead and file without it since mine was a cash prize. Should I wait?

suelee000
February 8th, 2006, 9:28am
I'm still waiting on two forms. I didn't know if there was a deadline as to when the companies have to send the forms. Any input from you knowledgable sweepers or tax people would be greatly appreciated.

The deadline is Jan 31 to send then out, but...someone pointed out that the COPY A of the forn goes to the IRS and isn't due until sometime in Feb. COPY B goes to the winner. SO my guess is that alot of sponsors send COPY A and COPY B at the same time.

bjdotson
February 8th, 2006, 9:32am
The instuctions on this is quite clear. Do NOT send 1099s with your tax form. I have gone through this several times and the tax instructions have never changed and I have had 1099s ranging in amount from $600 to $16,133

Sweethart79
February 8th, 2006, 9:42am
The instuctions on this is quite clear. Do NOT send 1099s with your tax form. I have gone through this several times and the tax instructions have never changed and I have had 1099s ranging in amount from $600 to $16,133


Thank you for clearing that up. So in reality I dont even NEED to have the 1099 to file since I know the exact amount and there wont be any discussion about FMV vs. ARV?

taterbug
February 8th, 2006, 11:41am
I thought it was Jan 31 (same as w-2's) but someone else posted that it was feb 15. So I'm not sure.

I have yet to receive my 1099 from eprize.

Someone said that you need to submit the 1099 with your tax forms when you file yet I was told that no you dont. Anyone know the REAL answer? I was just going to go ahead and file without it since mine was a cash prize. Should I wait?

You don't have to submit 1099s with your return. The deadline is supposed to be Jan. 31 for companies mailing them to you, however IRS does not impose any penalties for late 1099s unless they are received by IRS after February 28. Since there are no penalties there is no great incentive for companies to get them to you on time. If you know the exact amount of your winnings you can go ahead and file. I won $750 cash in August, got the check from ePrize, and never did receive the 1099. I filed my taxes last week.

See the "When Due" portion of the following page:

http://www.taxguru.net/archive/2002_01_01_taxguruarchive.html

tofu
February 8th, 2006, 12:15pm
You pay taxes on a trip that you take THIS year, next year. When you won it is immaterial, it's the year that you receive it.

Actually, if the trip is booked in 2005, but you take it in 2006, then you can end up paying taxes on it in 2005 - it depends on the sponsor.

ePrize says "You will only be issued a 1099 if you traveled, booked your trip, or received a travel voucher in 2005."

That's why I'm still waiting for a final clarification - this trip was booked last fall.

tofu
February 8th, 2006, 12:18pm
Has anyone with 1099 problems with ePrize heard anything yet? I had no reply to my e-mail and have heard NOTHING from them yet. At leat a 'we're checking into it' would be nice.

I just received a response from ePrize today about a 1099. Well, actually a request for more information so they could follow up. It was in response to an e-mail I sent on January 31st.

tlak
February 8th, 2006, 12:38pm
If your counting they screwed up mine too. Email "Fulfillment" fulfillment@eprizefulfillment.com.
Don't know if they just fixed it or if it was because I called the two sponsers.

remo28
February 8th, 2006, 4:03pm
I got a reply today. They told me to toss the 2 1099s I had recived in error and they would be mailing out a new, corrected 1099 today. But only one of the first 2 was an error. I know the exact amount, so I'm just going with that and filing them today! I think ePrize needs to take a good look at their accounting, something is obviously messed up and needs help.

bkstar
February 9th, 2006, 11:18am
Actually, if the trip is booked in 2005, but you take it in 2006, then you can end up paying taxes on it in 2005 - it depends on the sponsor.

ePrize says "You will only be issued a 1099 if you traveled, booked your trip, or received a travel voucher in 2005."

That's why I'm still waiting for a final clarification - this trip was booked last fall.


That is what happened with my trip won in 2004. They booked the trip in 2004 and I got the 1099 in 2005 and filed with my taxes in 2005. So it does depend on the sponsor.

good luck!

bk

tofu
March 6th, 2006, 2:47pm
Ok, so after two e-mails from ePrize saying "no, your trip won't be taxed for 2005", DH got the mail today to find - a 1099 for the trip win for this year!! Dang it - and I JUST mailed in the taxes at the end of last week, without including the trip win in the amount! So now I have to amend both Fed and State and send in big ol' checks.

Grrr!!! :mad2:

wackydackydoo
March 6th, 2006, 2:49pm
Check with the IRS first. If you received the trip this year, it shouldn't be taxable until next year.

jennem
March 6th, 2006, 3:44pm
Don't overthink it. If you received a 1099 on it last year and paid your taxes on it, the IRS isn't going to give you flack over it since it's been reported already and you have the documentation to back it up.

Yes, the IRS is going to give you flack over it. It is easy to prove you got a check AND a 1099 in the previous year, but you try proving you DIDN"T get a check the following year too. It's really hard to prove you didn't get a payment, without the company's cooperation. It could lead to an IRS nightmare. Yes, eventually you will be proven right, but it will be a long hard path. You can't just say "I got a check last year but not this year," and have the IRS say "Oh, sure, OK, never mind!"

(Wacky, once again you are presenting YOUR OPINION (and an incorrect one at that) as a hard-and-fast tax fact. Once again you could get people into a lot of trouble if they listen to you. Why do you feel that you must do that constantly? Is it an ego thing?)

If you can't get ePrize to fix it, call an accountant or other tax professional. The $150 you will pay is well worth the hassle you won't have later.

Actually if you received the prize in 2005, you should have pay tax on this year's taxes not last year's. It doesn't matter when the check is dated.

I issue 1099s for my company and it has to do with the date on the check, not when you received it, if it is a cash prize. If we issue and mail a check on Dec. 31, that's what has to match the IRS records, not when you get it.

Ultimately with checks the IRS will need to match the date of check/date of issuance with the 1099. Unfortunately, when you have it in your hands isn't a provable fact. Once you cash that check dated 2004, even if it's March 2005, you become liable for 2004 taxes.

A trip or other noncash prize-in-kind, however, is taxable in the year it is RECEIVED. If you BOOK it, it means you've received it (oddly enough) so it is taxable in that year even if you travel the following year.

PLEASE NOTE THAT I AM NOT A TAX PROFESSIONAL, BUT AN APPRAISER WHO DEALS CONSTANTLY WITH THE IRS. I AM OFFERING AN OPINION BASED ON MY EXPERIENCES. PLEASE CONSULT A TAX PROFESSIONAL BEFORE TAKING ANY ACTION, IF THE COMPANY WHO ISSUED THE 1099 CAN'T HELP YOU OUT.

Jennifer

Britta
March 6th, 2006, 3:46pm
Big pain, but totally resolveable! My mom got one from a company she earned $600 from that was for $60,000!!! She got a *huge* bill from the IRS but with some quick phone calls and a resubmitted 1099 it was figured out. Contact e-prize and the IRS and see what they need you to do to figure it out.

Good luck!

wackydackydoo
March 6th, 2006, 3:54pm
Good God. She's back for blood again!! Just Can't get enough!! :trolls:

...and, yes, it would be easy to prove she didn't get the check. The winner's bank would have a record of the check being cashed, and the sponsor would have a record of the cashed and returned check.

tofu
March 6th, 2006, 4:12pm
It's always fun for us "new sweepers" to go through our first tax time - we learn so much! :laugh: I'm looking at some of those big prizes with different eyes now!!

I talked to the IRS, and the helpful IRS guy suggested doing an amended return ASAP and getting it in the system. I also sent an e-mail and left a voice mail for ePrize, but I doubt I'll hear anything enlightening on that end.

I'd have to pay taxes on the trip anyhow - doesn't hurt much more than my savings account to do it now rather than 12 months from now. I'm only crabby because I checked and double-checked to make sure it was "safe" to do my taxes, and I still will end up doing them twice (which will take me 15 minutes tops - I've got the FMV spreadsheet amended, know the new total for line 21 on the 1040, and can carry the math through for the rest). I'm just one of those anal types that likes knowing all the numbers WAAAAY in advance. :laugh:

jennem
March 6th, 2006, 4:13pm
...and, yes, it would be easy to prove she didn't get the check. The winner's bank would have a record of the check being cashed, and the sponsor would have a record of the cashed and returned check.

Yes, if the sponsor complies, there is no problem proving she didn't get a check.

However, the winner does not have to utilize her own bank to cash a check--she could use any check-cashing service anywhere, anonymously, or a different bank, or whatever. Her main bank not having a record of it means and proves nothing. So once again, WITHOUT THE SPONSOR'S COOPERATION there is no way to prove she didn't get the check.

If the sponsor is willing to cooperate, it is better to get them to do it NOW than later after the IRS is involved. Without their cooperation, there is NO WAY TO PROVE that a check wasn't received, so it is time to cover all bases with either the sponsor or a tax accountant/attorney before an audit is triggered.

How it is "trollish" to warn people to be very, very careful with the IRS is beyond me, but you are certainly entitled to your opinion on that point. Trolls are a matter of opinion. Tax law, on the other hand, is not. Unfortunately, if you are going to persist in your singlehanded dedication to mislead people about tax law, there is little I or anyone else can do except make sure they know that it is your opinion and FAR from factual. I just wish I understood WHY you want others to behave so casually and incorrectly towards the IRS...what's in it for you?

Jennifer

wackydackydoo
March 6th, 2006, 4:28pm
Well, here's a fact. The IRS has access to everyone's financial institute right from where they sit. If there was any question about the person lying about not receiving the check, they simply can go through the sponsor's financial institute to find out if there was an extra check made out in this person's name. The sponsor will also have the document number of the check made out in that person's name if the IRS needed it. It's not hard for the IRS to prove or disprove the existence of this check and if it were cashed.

Another OLSer here received a call from the IRS questioning her submission of 1099 information, and it wasn't a big deal. She explained how she reported her prizes and that was the end of it.

You're trying to scare people into believing that the IRS is going to do something terrible to that person if that person doesn't report a check that she never got and doesn't exist. The IRS can establish it's existence very easily.

Quite frankly, I find it interesting that your job always seems to entail whatever topic is being debated or discussed making you an instant expert on the topic.

In other words, I don't believe a word of what you say and think you make it all up as you go along.

margarita_mama
March 6th, 2006, 4:44pm
I won my hawaii trip last November.
Received travel certificates (not vouchers)...which are to be turned in to AA when I make my flight reservations in December. Received the hotel gift certificate for my hotel, which I will turn in when i make my reservations and also rec'd the $500 travelers's check.
None of these items have my name on them anywhere.
However, I did receive a 1099 for this trip about mid-January, and I have not even made my reservations yet.
I figure that taxes will be due on it no matter what...does not matter whether I pay them this year or next.
I did some quick research and it looks as if the ARV is very close to the FMV...so I did not even bother checking with the sponsor on this.
According to my tax accountant, it DID need to be reported with 2005 taxes anyway.
So, I guess, this would all depend on the sponsor and when they send the 1099's and the advice of your tax preparer. You will get different answers from the IRS each time you call.
I did do research on the IRS website as well as several other tax forums, and COULD NOT FIND it stated ANYWHERE that taxes for trip wins do not have to be paid until the year you take it, so I don't know where that notion came from.
Again, this is just my two cents.
If you get the 1099, you most likely should go ahead and pay the taxes during the year for which you received it (the 1099). :twocents:

tofu
March 6th, 2006, 4:49pm
If you get the 1099, you most likely should go ahead and pay the taxes during the year for which you received it (the 1099). :twocents:

My logic as well! Now, if I get a second 1099 for it NEXT year - THEN I'M PITCHING A FIT!! :laugh:

Meanwhile, there seems to be a fight going on overhead - was it something I said?

margarita_mama
March 6th, 2006, 4:54pm
My logic as well! Now, if I get a second 1099 for it NEXT year - THEN I'M PITCHING A FIT!! :laugh:

Meanwhile, there seems to be a fight going on overhead - was it something I said?

So...it's all your fault this thread got bumped up again, huh? :bwhip:

tofu
March 6th, 2006, 4:55pm
So...it's all your fault this thread got bumped up again, huh? :bwhip:

I didn't know, really! Guess some things get buried for a reason! :laugh: :gvibes:

cher4sc
March 6th, 2006, 4:59pm
As long as we're resurrecting this thread about the 1099's...

I got 2 1099's for my $100,000 prize. One from JC Penney, which issued the check, and one from Marden Kane. I was just planning on ignoring the one from Marden Kane, since they never paid me, just notified me. Is that wrong?

tofu
March 6th, 2006, 5:03pm
As long as we're resurrecting this thread about the 1099's...

I got 2 1099's for my $100,000 prize. One from JC Penney, which issued the check, and one from Marden Kane. I was just planning on ignoring the one from Marden Kane, since they never paid me, just notified me. Is that wrong?

I'd really suggest contacting Marden-Kane and making sure the IRS doesn't have two 1099s for you! If both JC Penney and Marden-Kane sent 1099s in, the IRS might jump on you later...

coljim
March 6th, 2006, 5:07pm
This is my trip win story. I won the trip and sent back all the paper work in 2005, but didn't travel until January 1, 2006. I contacted the sponsor and the 1099 will come next year. I suspect that some sponsors/ judging agencies are more savvy than others.
As far as a dupe 1099 is concerned I would never ignore it, i would request that one of them void it. Otherwise I would notate to the IRS.

suelee000
March 6th, 2006, 6:11pm
I issue 1099s for my company and it has to do with the date on the check, not when you received it, if it is a cash prize. If we issue and mail a check on Dec. 31, that's what has to match the IRS records, not when you get it.

Ultimately with checks the IRS will need to match the date of check/date of issuance with the 1099. Unfortunately, when you have it in your hands isn't a provable fact. Once you cash that check dated 2004, even if it's March 2005, you become liable for 2004 taxes.

A trip or other noncash prize-in-kind, however, is taxable in the year it is RECEIVED. If you BOOK it, it means you've received it (oddly enough) so it is taxable in that year even if you travel the following year.

PLEASE NOTE THAT I AM NOT A TAX PROFESSIONAL, BUT AN APPRAISER WHO DEALS CONSTANTLY WITH THE IRS. I AM OFFERING AN OPINION BASED ON MY EXPERIENCES. PLEASE CONSULT A TAX PROFESSIONAL BEFORE TAKING ANY ACTION, IF THE COMPANY WHO ISSUED THE 1099 CAN'T HELP YOU OUT.

Jennifer

NOt a tax expert, either.

From IRS website. Publication 525 (http://www.irs.gov/publications/p525/ar01.html)Constructively received income. You are generally taxed on income that is available to you, regardless of whether it is actually in your possession.

A valid check that you received or that was made available to you before the end of the tax year is considered income constructively received in that year, even if you do not cash the check or deposit it to your account until the next year. For example, if the postal service tries to deliver a check to you on the last day of the tax year but you are not at home to receive it, you must include the amount in your income for that tax year. If the check was mailed so that it could not possibly reach you until after the end of the tax year, and you could not otherwise get the funds before the end of the year, you include the amount in your income for the next tax year.

Britta
March 6th, 2006, 7:03pm
As long as we're resurrecting this thread about the 1099's...

I got 2 1099's for my $100,000 prize. One from JC Penney, which issued the check, and one from Marden Kane. I was just planning on ignoring the one from Marden Kane, since they never paid me, just notified me. Is that wrong?

I'm not a tax expert but do run my own business so I know about 1099s...If you've received a 1099, that means the company has reported to the IRS that they paid you that money (quite an accounting mistake - not sure how that got by their accounting dept), so if they've sent it to you in error, you definitely need to contact the company to have them file an amended form, otherwise the IRS will be in touch - and with an amount like that it will be fast! I posted this earlier in the thread but you may not have seen it - my mom received a 1099 for $60,000 from a company who paid her $600. The IRS contacted her with an enormous bill within weeks - they sorted it out quickly and easily but it would be best to avoid that happening at all!

tofu
March 7th, 2006, 5:38pm
Got an update - I talked to a VERY nice person at the sponsor's who got a hold of an actual living person at ePrize who said "oops"... and they are voiding my 1099. They will issue me another one next year (and it will be for the FMV rather than the ARV as a plus!). So 1099 issuers ARE perfectly capable of voiding or changing 1099s.

now we return to our regularly scheduled tax debate...

margarita_mama
March 7th, 2006, 5:45pm
Got an update - I talked to a VERY nice person at the sponsor's who got a hold of an actual living person at ePrize who said "oops"... and they are voiding my 1099. They will issue me another one next year (and it will be for the FMV rather than the ARV as a plus!). So 1099 issuers ARE perfectly capable of voiding or changing 1099s.

now we return to our regularly scheduled tax debate...

That's good news, but I got a question....
If you received the 1099, that means the IRS has already received it also. What do you do about that?

maryte
March 7th, 2006, 5:50pm
My 1099 issue with Orbitz was a little different. I won airline tickets in 2004. Got the 1099 in February 2005 and filed my taxes. I booked and took the trip in 2005. Then yesterday I got ANOTHER 1099 for the exact same prize, only with a 2005 date. I called them immediately and hopefully I'll have a message from them when I get home. The woman I spoke with said they'd had "quite a few calls" from other folks with the same problem and she did not anticipate any problems rectifiying it.

Let's hope she's right.

tofu
March 7th, 2006, 5:51pm
That's good news, but I got a question....
If you received the 1099, that means the IRS has already received it also. What do you do about that?

Call the issuer of the 1099 and have them void it in the IRS system - they can submit 1099s, void them, or correct them. For big companies that issue a lot of 1099s, I'm sure it's a pretty automated process - not too much extra effort on their part.

annwithe
March 7th, 2006, 8:28pm
My 1099 issue with Orbitz was a little different. I won airline tickets in 2004. Got the 1099 in February 2005 and filed my taxes. I booked and took the trip in 2005. Then yesterday I got ANOTHER 1099 for the exact same prize, only with a 2005 date. I called them immediately and hopefully I'll have a message from them when I get home. The woman I spoke with said they'd had "quite a few calls" from other folks with the same problem and she did not anticipate any problems rectifiying it.

Let's hope she's right.

That happened to me too. Are you talking with Carey? She didn't return my call today and I am not happy. They made the mistake. I think some courtesy and customer service are in order.

maryte
March 7th, 2006, 9:13pm
I had a message from ePrize today. They said they were in error and would correct the submission with the IRS. So I'm okay with them now. Hope you hear from them soon (they probably had a long list of folks to call, so I'm sure you'll hear soon, if you haven't already).