Good News For High Rollers

For authors and their promotion teams who wish to make a big splash with contests, sweepstakes and other promotions, there is good news. 

Instead of having to ask contest winners for a W-9, (which is an official form on which a recipient provides their name, address and social security number), and send them a year-end 1099-MISC if they won a prize worth $600, the threshold for that nuisance is now $2,000.

That level of prize-giving might be excessive. It is still unlawful to require the purchase of one's book as a condition of entry for a chance at winning anything, whether it is cash, experiences, merchandise or a gift basket.

For more about advertising law, and the proper reporting to the IRS of prizes in excess go $1,999-00 see the Venable blog written by Melissa Landau Steinman, Christopher N. Moran, and Eden Caliendo.

https://www.allaboutadvertisinglaw.com/2026/01/new-prize-tax-rules-raise-the-1099-threshold-for-sweepstakes-and-contests.html#page=1

Even so, authors who run giveaways are still required to keep accurate records of what prizes were given to whom, even when the prizes are too small to have to be reported.

All the best,

Rowena Cherry