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Wasn't aware I was taking part in a contest but now I owe taxes on the winnings?!?

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lo2e

Junior Member
What is the name of your state (only U.S. law)? Maine

A bunch of us participated in LastMinuteTravel.com's "World for a Dollar" promotion, where they claimed that we could purchase a hotel stay for $1 per night. Only when we actually got through the booking process (and input our credit card number), they instead decided to offer the stay for FREE and are now threatening to cancel the reservations unless we provide a SS# so that they can send out 1099 forms for "winning" the hotel stay... in the terms and conditions, it says specifically "The Campaign does not constitute a prize, lottery, or sweepstakes. " (I've got the screen shot of the terms and conditions). Needless to say, we were not made aware ahead of time that we were taking part in a contest, all of its participants thought we would have to pay $1 per night. Are we REALLY on the hook for the taxes? And what to do if they actually do cancel our bookings?

Here is are two screen shots of the terms and conditions(couldn't figure out how to combine them, sorry...): http://i616.photobucket.com/albums/tt245/figment79/Terms1.jpg and http://i616.photobucket.com/albums/tt245/figment79/Terms2.jpg

Another issue here is that they are asking for your social security # and other personal information on an improperly setup web site in order to send these 1099 Tax forms they claim we need. This 1099 request web site is not securely encrypted. This means anyone who knows how to could get this information unencrypted and instigate identity theft. Not to mention it is done in a highly unprofessional way (using the IP address instead of a domain name, not having any privacy policy on the page, etc.).

Thanks in advance for any and all help! This is a great site.
 


Zigner

Senior Member, Non-Attorney
With all those red flags, do you even have to ASK the question? Why would you want to do business with them in the first place?

Stinks of scam, if you ask me...
 

Dandy Don

Senior Member
Because people are too willing to think they are getting a good deal without any cost. She should be reporting this company to the Better Business Bureau and to the State Attorney General's Office so they can be investigated and shut down.
 

lo2e

Junior Member
With all those red flags, do you even have to ASK the question? Why would you want to do business with them in the first place?
Stinks of scam, if you ask me...
I already participated in the promotion, and AFTER I already booked a hotel stay did they say it was free and that the "winnings" would be taxable... they were a fairly reputable company before the promotion.

Because people are too willing to think they are getting a good deal without any cost. She should be reporting this company to the Better Business Bureau and to the State Attorney General's Office so they can be investigated and shut down.
First of all, I am a he, and second of all, I did not ever think that I'd be able to get a deal at no cost... it said on their website that they are selling hotel stays for $1 per night... it did not say free, it did not say it was a contest or sweepstakes, it said that I could purchase for $1 per night. That's what I wanted to do, I did not want to take part in a contest.
 

tranquility

Senior Member
There is no difference between $1 and free. Did you think that $1 is fair compensation for the hotel room and free is a gift/prize?

I don't think this is a prize. I think it is a scam, but I don't know. If it is a prize or award above a certain amount they have the right to request your taxpayer ID#. I wouldn't give it in this instance and forgoe the room. But that's me.
 
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davew128

Senior Member
When the doctor from Nigeria asked you to cash a check for him and send him the proceeds less your commission, what did you say?
 

lo2e

Junior Member
When the doctor from Nigeria asked you to cash a check for him and send him the proceeds less your commission, what did you say?
Wow, I came to this site as a newbie hoping for some advice and all I'm getting is ridicule for asking what my legal options are about a website that claimed one thing and then decided to change the terms of its contract with me after I made my "purchase". Guess I shouldn't have come here and believe me, I never will come back... I hope the owner of this site is happy about the way information is offered!
 
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