The down side of prize winning

Abstract

While winning a prize can be an exciting time, many winners do not take the time to think about what kind of taxes they are going to owe on these prizes. I decided to research the tax laws that apply to prizes and relate these laws to cases that I found involving prize winning. I focused primarily on cases involving noncash prizes, because these winners did not win any money to pay the attached taxes with. Based on my research, I chose to advise future winners with recommendations that they should consider so that they are not caught off guard when the IRS knocks on their door.