The laws and regulations affecting sweepstakes, contests and other promotion activities, as well as their enforcement, are extremely dynamic and can be very confusing or complicated. Browse the articles and other resources available on our website to learn more about key promotion issues.
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Ever wondered why it is so difficult to conduct promotions in the alcohol beverage industry?
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The Internal Revenue Code mandates that the value of a sweepstakes or contest prize be included in the winner's gross income. If the value of the prize is $600 or more, the payor of the prize must file with the Internal Revenue Service a Form 1099 (with a copy to the winner) reporting the value of the prize.