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| -Signs, Portents, and the Weather- | |
| 'Lucky winner' at Astros game receives IRS bill for $927 for year's supply of coffee & donuts | |
| 2011-03-19 | |
| Choate, 56, of Houston last fall won a year's supply of coupons from Shipley's Do-Nuts as one of the lucky prize-winners during Astros Fan Appreciation Day at Minute Maid Park. "I went up to the customer service window, fat, dumb and happy, and signed a form and picked up a fistful of certificates, each good for a free doughnut or a dozen doughnut holes and one free cup of coffee," he said. But last month, much like the Grim Reaper, the punch line to his prize landed in Choate's mailbox: an Internal Revenue Service Form 1099, informing him that he owed taxes on $927.61 in "free" coffee and doughnuts. Choate, mind you, is no rube. He knew about Form 1099s, and he presumed there would be some tax liability for his edible appreciation. Nearly a thousand bucks, however, exceeded his expectations considerably. The Astros should have known better and given a prize of lesser value.
Shipley's charges 83 cents for a glazed doughnut, $1.25 for doughnut holes and $1.25 for a small cup of coffee, so the maximum value per coupon of about $2.50, multiplied by 365, comes to approximately the $927.61 on Choate's 1099. Mmm, Shipley's Donuts. I'll take them over those cake-y Krispy Kreme anyday. Even if Choate never uses all the coupons, which have no expiration date and, thus, can be used beyond this year, Aksamit said the IRS will demand its dough. "The minute you sign to accept the award, you get tagged," he said. "The only option is not to accept the award." | |
| Posted by:gromky |
| #12 should I have reported my winnings Shhh, say no more... |
| Posted by: Anguper Hupomosing9418 2011-03-19 21:27 |
| #11 Apparently very few Rantburgers have ever won anything the IRS cared much about. Oh dear. Anguper Hupomosing9418, should I have reported my winnings from the Symphony Club's "split the pot" lottery? I've won several hundred dollars over the years. I was going to buy a new purse with last month's winnings, but if I need to set it aside to pay taxes... |
| Posted by: trailing wife 2011-03-19 17:03 |
| #10 I'm not sure why this is even news, let alone something that shows up on Rantburg. This is not new - the IRS has been doing this for years. Apparently very few Rantburgers have ever won anything the IRS cared much about. |
| Posted by: Anguper Hupomosing9418 2011-03-19 16:18 |
| #9 Spouser went to Vegas with the daughters for a long weekend back on 08 forgot to tell me about the 6K she won, man they had a great time. IRS turns up last year want 1600 bucks. Okay sorted it out and paid up then the F'ers turned me over to the State who wanted $680. What happens in Vegas follows you home. |
| Posted by: Retired LEO 2011-03-19 16:06 |
| #8 CF - reporter's a dumbfuck. The 1099-MISC has the $927.61 in one of the boxes; he owes about $200 tax to the Feds on that amount. |
| Posted by: Raj 2011-03-19 13:58 |
| #7 His tax liability was 100% of his winnings value? |
| Posted by: CrazyFool 2011-03-19 13:33 |
| #6 ...I believe it was the 'coffee and donuts' angle. Cops hit hardest. |
| Posted by: Procopius2k 2011-03-19 11:39 |
| #5 I'm not sure why this is even news, let alone something that shows up on Rantburg. This is not new - the IRS has been doing this for years. Maybe I should post an article when I get a notice from the DMV that I need to renew the registration for my car. |
| Posted by: Rambler in Virginia 2011-03-19 10:32 |
| #4 IIRC over $1200 you get a W2-G. Over $5000 they deduct the taxes right off the top |
| Posted by: Frank G 2011-03-19 10:19 |
| #3 Just about every casino has their own resident IRS agent. Whenever anyone hits big, they go up to the winner, take their cut right then, and give him a W2-G (gambling) form to submit, to show the money has been taken. |
| Posted by: Anonymoose 2011-03-19 09:51 |
| #2 I believe you can offset your winnings with your costs down to $0. But, you have to keep receipts. Who does that? |
| Posted by: Eric Jablow 2011-03-19 08:10 |
| #1 lottery winnings are taxed as ordinary income so is the purchase of lottery tickets tax deductible then? |
| Posted by: classer 2011-03-19 05:23 |