Show I I I Of Prizes And Awards I Prizes and awards are generally generally gen gen- taxable and the fair market market mar mar- ket value must be included in gross income on tax returns Roland V V. V Wise District Director Director Di- Di rector of the Internal Revenue Service reminded Utah ers Examples of such prizes and awards are items received from radio and television giveaway giveaway give give- away shows contests door prizes raffles lotterIes and sweepstakes I I SHARES 0 OF F STOCK building i I lots merchandise and vacation trips to luxury resort areas reI received re- re reI I by employees salesmen I I dealers corporation orne officers e l' l s sand and others are taxable too I These awards are usually received re- re I in connection with sales I contests and promotion pro pro- I grams The Revenue Service emphasized emphasized sized that the fair market value of the trips services or merchandise merchandise mer- mer chandise received is the amount to be included as taxable income j I This applies even if the recap recap- lent dIsposes of such items by gift or otherwise However where a ta taxpayer Payer does not accept accept ac- ac an award its value does not have to b be Included In taxable taxable tax tax- able income ALTHOUGH taxpayers a are l' l e generally a aware war e that cash awards are taxable the Revenue Service is becoming concerned over misunderstanding by taxpayers taxpayers tax tax- I payers who have received non non- cash incentive awards and who have either omitted or understated understated under under- stated theIr value for federal income income in- in come tax purposes Taxpayers desiring further information a about b 0 u t t taxable a x a b I e awards should contact their local local lo- lo cal Internal Revenue Service office Mr Wise said |