luckywinner
Junior Member
What is the name of your state? Michigan
I recently won $15,000 in a 50/50 raffle from a tax-exempt organization. It seems that the representative for the organization may not have followed federal tax law because they did not withhold any taxes. I got the entire amount of the winnings by check. The rep did take my name and SS number and warned me that I would be receiving a 1099 in January (I tend to think it would be a W-G2), and that I might want to hold out funds to pay the taxes next year. Everything I've read says that the organization MUST withhold federal taxes if the prize is over $5,000....otherwise "if the organization fails to withhold correctly, it is liable for the tax."
My original intent was to send an estimated payment to the IRS now rather than later to cover what I think I would owe. But seeing as the organization did not withhold when they should have (IMO), would there be any reason to think that the responsibility of the taxes has fallen on them? If so, can they 'reverse' their error?What is the name of your state?
I recently won $15,000 in a 50/50 raffle from a tax-exempt organization. It seems that the representative for the organization may not have followed federal tax law because they did not withhold any taxes. I got the entire amount of the winnings by check. The rep did take my name and SS number and warned me that I would be receiving a 1099 in January (I tend to think it would be a W-G2), and that I might want to hold out funds to pay the taxes next year. Everything I've read says that the organization MUST withhold federal taxes if the prize is over $5,000....otherwise "if the organization fails to withhold correctly, it is liable for the tax."
My original intent was to send an estimated payment to the IRS now rather than later to cover what I think I would owe. But seeing as the organization did not withhold when they should have (IMO), would there be any reason to think that the responsibility of the taxes has fallen on them? If so, can they 'reverse' their error?What is the name of your state?
