Reporting winners to the IRS

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Question:

We ran a contest and no prize was over $300. We didn’t need to collect non-public private information from the winners since the prizes were small, did we?

Answer:

The IRS threshold for 1099-MISC reporting is $600 in a calendar year. If a winner could win twice or could win other contests at the bank the reporting threshold could be met, and the information for reporting (name, address and SSN) would then be required.

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Learn more about John Burnett’s Sweepstakes, Contests and Lotteries: What is Allowed? webinar.