Winnings Classifed as Non Employee Compensation ?

Question

Hello,I won a plasma TV via work 2 years ago in 2004.  Samsungshipped it to me and that was the last I heard of it.  Inever received any paperwork or an entry on my 2004earnings.  Just recently I recived a notice from the IRSstating that my 2004 tax return was incorrect and I owe$1600 as the TV was not reported.   It appears Samsungsubmitted a 1099 MISC with my social for the amount of theTV....$4000 that was listed as Non Employee Compenstation. I was wondering what recourse I have if any.  While I didreceive the TV I never received the 1099  (thus I never newwhat it was worth) and the MSRP is outrageous as the marketprice is only around $2200. - thanks for your timeSam

Arthur Kamlet · Accepted Answer

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 @    Columbus OH    K2PZH

Phil Marti · Answer

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

Winnings Classifed as Non Employee Compensation ?

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