Who owns the sweepstakes winnings?

What is the name of your state? Michigan.

While at work I ran an ad on one of the internet employment sites for an employment opportunity we had. I used a Amex card with both my name and the company name on it to pay for the ad.

Shortly there after I was notified as the Grand Prize winner of their Sweepstake. The company owner suggested we opt out for the money. There is some assumption that the prize belongs to the company. I took the cash value of $4,500.00. I know I will personally be taxed on this next year, they made that very clear.

The question I have is who's money is this? Mine or the Company's?

I was told to put the money in my bank, hold a estimated amount for next years taxes and purchase "items" for the company until the balance runs out.

If it is the company's money I'd just as soon give them the balance, they would then owe taxes on that revenue (not their preference).

If the money is mine, like frequent flyer points earned on company time and paid with company funds, is there a ruling that I can reference?

[abezon]

Let's see, you made a company purchase with a company credit card that happened to have your name on it. Who gets the bill for the purchases, you or the company? The money is probably the company's, but you can't just give it to them & not report the income.

Thanks abezon,

The assumption that the winnings belonged to the company was mine, I alerted the controller and President and my tax preparer. (I tried to get the money sent to the company but the sweepstakes rules required an individual recipient and the controller refused) Based on my personal tax bracket the tax preparer advised to withhold 26% for Fed and 4% for State.

I only became concerned and confused as to the ownership when I was asked to start paying some bill or making some purchases so the company wouldn't have to pay income tax on the transfer from me to them. This made me very uncomfortable. Tax evasion or helping someone to evade taxes is not in my make-up.

I still wonder if there is a comparison between something like this and frequent flyer miles awarded to individuals on company paid trips.