A Board on
which I serve wants to have a raffle that will give away money
and a car. Can you tell me what the dollar threshold is for
reporting the winnings to the IRS. Must we ask for people
to give their SS# in order to collect their prize?
The threshold for reporting gambling winnings on Form W-2G is generally $600. You must actually withhold if the winnings are more than $5000 from a sweepstakes, wagering pool, or a lottery. You must also withhold if the winner does not give you the SSN and the prize is reportable (over $600).
You may want to
be sure that the lottery is permitted under state law. Otherwise
it may be illegal activity subject to the possibility of criminal
prosecution. (Legality has nothing to do with the requirement
to report. That's how Al Capone went to jail.)
With pressure mounting on nonprofits to consider affiliations with other organizations, this workshop is designed to help you better navigate the world of mergers, acquisitions and affiliations. Unlike the corporate world, there are no financial "matchmakers" to help nonprofits identify successful partners for a merger. Learn more in our pre-recorded webinar.
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