Tax form issuance promotion winners

/Tax form issuance promotion winners
Tax form issuance promotion winners 2018-01-25T20:47:40+00:00

Tax form issuance for promotion prize winners

If you award a prize with a fair market value of $600 or more, the sponsor company is required by tax law to issue the winner a Form 1099-MISC and report the winning to the Internal Revenue Service using a Form 1096. Promotion Activators provides tax issuance services for sponsor companies. The 1099-MISC form should be received by the winners no later than January 31 and the Form 1096 should be received by the IRS by February 28. Failure to report taxes may result in fines so it is extremely important that the deadlines are met. For example, if a winner received a prize this year, then they should receive a 1099-MISC on or before January 31 the following tax year.

Promotion Activators provides all tax reporting services! We’ve been assisting companies in tax-reporting since 1978 and have made the process smooth and efficient for both the sponsor company and the winners. We provide our phone number on the 1099s so that when the winners receive tax documents and have questions, they’re able to contact us directly. Also, and this is more of a function of the winner notification/verification process, we make sure winners understand the tax implications of accepting a prize. Before the prize is awarded, Promotion Activators provides winners a written statement to endorse, agreeing to the tax liability and provide his or her full name, address and Social Security number. We also clearly note the tax reporting requirements of accepting prizes within the promotion official rules.

The promotion’s Official Rules and the documents sent to the potential winners clearly state the requirements of accepting a prize, the forms needed to complete, and how their tax information will be used. We also advise the winner to consult with their tax advisor as a best practice. All information is kept private and secure because of their contents.