Winnings Classifed as Non Employee Compensation ?

Hello,

I won a plasma TV via work 2 years ago in 2004. Samsung shipped it to me and that was the last I heard of it. I never received any paperwork or an entry on my 2004 earnings. Just recently I recived a notice from the IRS stating that my 2004 tax return was incorrect and I owe $1600 as the TV was not reported. It appears Samsung submitted a 1099 MISC with my social for the amount of the TV....$4000 that was listed as Non Employee Compenstation. I was wondering what recourse I have if any. While I did receive the TV I never received the 1099 (thus I never new what it was worth) and the MSRP is outrageous as the market price is only around $2200.

- thanks for your time

Sam

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Reply to
smarque1
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Well, two issues.

First you have to report this income, but as Prizes/Awards and not as nonemployee compensation.

Answer the IRS notice by explaining it is a prize/Award for a TV, and not nonemployee compensation, and request the IRS go back to the 1099-Misc issuerer to verify the type of income.

Second, if you can find proof -- newspaper ads from two years ago, catalog ads, etc, to prove its fair market value was lower than shown, you would use the lower figure along with copies of your proof to claim less income.

__ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

Reply to
Arthur Kamlet

What do you mean "won ... via work"? Therein lies the answer to how this should be reported.

Reply to
Phil Marti

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