Can the sponsor of a sweepstakes or contest send the winner a 1099 greater than

phil c

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their actual costs? Sweepstakes sponsors putting a sweepstake or contest on the internet often show an "ARV" (approximate retail value).

At the beginning of the following year, they send a Form 1099 to the winner to file with their taxes.

May the sponsor show a value on the Form 1099 greater than their actual costs of providing the prize?
 
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