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Who is responsible for taxes on prizes and what are IRS 1099 forms?

April 26, 2017forms IRS prizes responsible taxes

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Who is responsible for taxes on prizes and what are IRS 1099 forms?

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In most cases, winners are responsible for all taxes on their prizes. Each winner with a prize valued over $600 must receive an IRS 1099 form from the Sponsor so that taxes can be collected on the prize from the winner.