I entered a sweepstakes called The Best Things in Life are Basic 2003 Sweepstakes. On December 2nd I was notified that I had won a Craftsman Tool Kit and that they would be sending a 1099 form to the IRS reflecting the value of the prize at $1,010.00.
After the prize arrived I was amazed that such a small tool set could be so expensive. I decided to check into the prices of these tools onlne. I found the tool box with the product number and it sales for $59.99
I could not find the 270 pc. Tool set but found a 271 pc. That sold for $299.00. I called D.L. Blair and ask them to put the correct value on the 1099. I was told that this was the retail value when prize was purchased for contest and that I would need to dispute this when I did my taxes.
I explained to them that would be setting myself up for a audit and I would rather not handle it that way. The taxes I will have to pay on the 1099 will be $300.00 on a prize valued at $360.00. D.L. Blair didn't care.
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