If a prize winner chooses not to redeem a prize that there is no cash substitution for, is it possible to reverse the 1099 that was issued to them?”
“As long as the prize winner did not have material access to the prize or any funds related to the prize, you can file a corrected 1099, eliminating the individual’s IRS reporting obligation of the declined prize. This can be found on page 7 of the 1099 General Instructions and was confirmed by IRS Information Officer Miss O’Roake. Filing a corrected 1099 involves sending the recipient another 1099 with the “”corrected”” box at the top marked.
