“Win Lunch with Bush; Owe Uncle Sam; For political sweepstakes winners, there really is no such thing as a ‘free’ lunch.”

Shane Goldmacher for National Journal:

Marcus Owens, a lawyer with the IRS for 25 years and now an attorney at Loeb and Loeb in Washington D.C., said that those issued a 1099 form could be caught fairly easily by the IRS if the taxes go unpaid. “The IRS actually has a computer matching program for those 1099s,” Owens said.

Flights, hotels, meals, transportation and other perks are all taxable, he said. The only part of the winnings that is untaxed is the time with the candidates themselves. “The IRS takes the position that the actual face time with the person is of no value,” Owens said.

Share this: