8 ms·

On the flipside, I worked on promotions game systems in the brand promotions space with instant win and giveaways after the user played a game. If they won we h

On the flipside, I worked on promotions game systems in the brand promotions space with instant win and giveaways after the user played a game. If they won we had to contact them to verify and get info to send them the prize. When someone won the prize we had to get the social security number of the person that won for gift tracking as many were over 15k, their contact info and location to send the prize, you'd be surprised at how many people pass that up or think it is a scam and/or never get back. We had to pick the next person if they passed it up or didn't get back and sometimes it would go through dozens of people before they would accept it. Lots of game systems, trips and even motorcycles were passed up. I myself would have probably done the same thing, hard to believe you won and if you do win it is hard to not think it is a scam due to systems like mentioned in the article.

mort96 8y ago
Why did you even need the SSN?
- TheSpiceIsLife 8y ago
  Not parent but presumably the bit about requiring it for gifts over $15k is a regulatory requirement?
  - deleted 8y ago
    [deleted]
- willowwillow 8y ago
  Only if you win a prize larger than a certain amount (I think it's somewhere around $600) the promoter of the sweepstakes must issue an IRS 1099-MISC form as such prizes are taxable income.
- drawkbox 8y ago
  As mentioned by others, sweepstakes sponsors are required to report prizes awarded to US residents to the IRS if the value is $600 or more. For tax purposes some also choose report prizes of lower values especially if they are giving away lots of them that equal substantial value businesses expense out. I thought it was only the 15k prizes above gift tax but it was actually any prize for tax tracking. Lots of people balked when the SSN question came up and understandably so. In a few cases the prizes were motorcycles and ATVs and I felt bad for the people that passed them up. The promotions systems were brand focused and most of them really did want to give away the prizes but sometimes it was tasking due to the fear of a scam. The entries were mainly for brand focused games and brand focused gear/prizes mostly marketing focused. The system also only asked for email and the opt-in for the company/brand loot running it was un-selected. Though the brand companies did want to collect emails of people interested in the brand, they had to opt-in for that. We mainly needed emails for contacting if the user won. After winning, names/SSN/location would be asked for but lots of people weren't having it.
  - beojan 8y ago
    Wouldn't it be easier to exempt prizes from income tax and instead have a sweepstakes tax paid by the sponsor instead?
    - drawkbox 8y ago
      It would be easier but it is law and the IRS wouldn't like that. Part of this process of getting the info allows it to be a gift if the sponsor does include paying the taxes, they still need the info to do that. Basically any transfer of value is tracked and the company that gives it away needs proof to write off the amount and/or declare it a gift. The SSN and affidavit are the scary part where people think it is a scam. Anytime you win prizes this happens even if you are on a gameshow. [1] [1] https://www.nerdwallet.com/blog/taxes/pay-taxes-game-show-winnings/ https://www.nerdwallet.com/blog/taxes/pay-taxes-game-show-wi...
  - raverbashing 8y ago
    Well this is solved by asking the SSN to redeem the prize, but not before the draw.
    - jonhendry18 8y ago
      The solution is probably a two-part form where the winner can fill in their SSN and seal it in an envelope, then the contest operator would take that envelope and enclose it with the operator's part of the form, and mail it. That way the contest operator need not ever see the winner's SSN. The amusing thing is the apparent widespread assumption that contest operators are shady as f.
      - mratzloff 8y ago
        "Here is a code. Please go onto the IRS website and enter this code and the relevant information, then tell me the code you get in response."
        8y ago
- astura 8y ago
  To report it to the IRS so the IRS knows where to send the tax bill.
willowwillow 8y ago
1099-MISC form for prize winners https://www.thebalanceeveryday.com/when-should-i-receive-1099-forms-for-my-sweepstakes-wins-897034 https://www.thebalanceeveryday.com/when-should-i-receive-109...
TheSpiceIsLife 8y ago
As an individual authenticating callers is difficult. I recently had someone claiming to be from the ATO (Australian Taxation Office) call and ask me to identify myself. Not surprising, my tax filing is overdue. I advised them as a security policy I do not give out PII to unauthenticated callers, asked for a reference number and a return phone number. The number I was given is not listed on the ATO website so I did not return the call. Found some forum posts claiming the number is for return callers who have a reference number. Still, if I can’t find the number listed on offical media I don’t call back. I’m trying to think of a way the average person could authenticate a caller. I’m not security or technology expert so my knowledge in this area is limited. Any ideas?
- asfdsfggtfd 8y ago
  I think just call back on one of their listed numbers and explain.
  - TheSpiceIsLife 8y ago
    It seems so obvious now you've pointed it out. I do like to over complicate things.
    - asfdsfggtfd 8y ago
      This is the advice given by banks and anti-fraud agencies. NB in some countries landlines can remain on a call for several minutes after the call receiver has hung up. A phisher will play a dial tone etc to make it seem realistic. The advice is to either wait 10 minutes (longer?) or preferably call back on another line if you receive a suspicious call.
      - princekolt 8y ago
        Or try calling somebody else you know. If you land back on the same caller, you know they're playing you. =)
      - jsjohnst 8y ago
astura 8y ago
This seems like an easy problem to solve. Make the winner fill out the tax forms and send them directly to the IRS. The IRS informs the promotion they've received the tax forms, and verifies names, addresses, amount match. The promotion releases the prize to the winner.
- toss1 8y ago
  Might not be so easy -- it is like paying payroll -- you, not only the recipient, need to report the tax ID of the person/entity that you paid.
  - astura 8y ago
    Right, so you provide that information to the winner to put on their form. No big deal.
    - toss1 8y ago
      Nope, you need to put the payee info on the forms that you submit as well as the recipient. If you are paying someone more than $600, you need to cut a 1099 form, which tells the category, such as interst, rent, misc, etc. (1099-Int, 1099-Misc, etc.). On the 1099, you must put the Tax Id of the recipient, which for a person is their SSN, and for another entity is typically their EIN. You submit your copy of the 1099, and they submit theirs. They need to match or the IRS see a red flag. So, no, you can't simply say "here's the form, you submit it". Source: I'm not a Tax Attny, but I live with one, and have co-owned several businesses that needed to cut and/or receive W-2s, 1099,s etc.
gambiting 8y ago
I was one of the very first developers with an app published on Google Play store, and as a "thank you" for having one of the first apps with 10k+ downloads(which wasn't difficult when number of apps on the store was measured in hundreds), Google wanted to send me the Nexus One phone - which was great, except that the email I got from them looked like scam, it was basically "hey you won a phone, click on this link and fill out this google spreadsheet with your details!" - no official google logo, it was just plain text email and the spreadsheet looked dodgy as hell. So I ignored it, until I read about the giveaway on a reputable site few days later - and yeah, I filled out the sheet and the phone arrived few weeks later. But it was very very easy to ignore it.
mikec3010 8y ago
I wonder how many were social security, retirees, or welfare recipients? I think those people will lose their benefits if they declare earnings. And perhaps they just don't think about it before they enter?

mort96 8y ago

Why did you even need the SSN?

TheSpiceIsLife 8y ago
Not parent but presumably the bit about requiring it for gifts over $15k is a regulatory requirement?
- deleted 8y ago
  [deleted]
willowwillow 8y ago
Only if you win a prize larger than a certain amount (I think it's somewhere around $600) the promoter of the sweepstakes must issue an IRS 1099-MISC form as such prizes are taxable income.
drawkbox 8y ago
As mentioned by others, sweepstakes sponsors are required to report prizes awarded to US residents to the IRS if the value is $600 or more. For tax purposes some also choose report prizes of lower values especially if they are giving away lots of them that equal substantial value businesses expense out. I thought it was only the 15k prizes above gift tax but it was actually any prize for tax tracking. Lots of people balked when the SSN question came up and understandably so. In a few cases the prizes were motorcycles and ATVs and I felt bad for the people that passed them up. The promotions systems were brand focused and most of them really did want to give away the prizes but sometimes it was tasking due to the fear of a scam. The entries were mainly for brand focused games and brand focused gear/prizes mostly marketing focused. The system also only asked for email and the opt-in for the company/brand loot running it was un-selected. Though the brand companies did want to collect emails of people interested in the brand, they had to opt-in for that. We mainly needed emails for contacting if the user won. After winning, names/SSN/location would be asked for but lots of people weren't having it.
- beojan 8y ago
  Wouldn't it be easier to exempt prizes from income tax and instead have a sweepstakes tax paid by the sponsor instead?
  - drawkbox 8y ago
    It would be easier but it is law and the IRS wouldn't like that. Part of this process of getting the info allows it to be a gift if the sponsor does include paying the taxes, they still need the info to do that. Basically any transfer of value is tracked and the company that gives it away needs proof to write off the amount and/or declare it a gift. The SSN and affidavit are the scary part where people think it is a scam. Anytime you win prizes this happens even if you are on a gameshow. [1] [1] https://www.nerdwallet.com/blog/taxes/pay-taxes-game-show-winnings/ https://www.nerdwallet.com/blog/taxes/pay-taxes-game-show-wi...
- raverbashing 8y ago
  Well this is solved by asking the SSN to redeem the prize, but not before the draw.
  - jonhendry18 8y ago
    The solution is probably a two-part form where the winner can fill in their SSN and seal it in an envelope, then the contest operator would take that envelope and enclose it with the operator's part of the form, and mail it. That way the contest operator need not ever see the winner's SSN. The amusing thing is the apparent widespread assumption that contest operators are shady as f.
    - mratzloff 8y ago
      "Here is a code. Please go onto the IRS website and enter this code and the relevant information, then tell me the code you get in response."
      - 8y ago
astura 8y ago
To report it to the IRS so the IRS knows where to send the tax bill.

willowwillow 8y ago

1099-MISC form for prize winners https://www.thebalanceeveryday.com/when-should-i-receive-1099-forms-for-my-sweepstakes-wins-897034 https://www.thebalanceeveryday.com/when-should-i-receive-109...

TheSpiceIsLife 8y ago

As an individual authenticating callers is difficult. I recently had someone claiming to be from the ATO (Australian Taxation Office) call and ask me to identify myself. Not surprising, my tax filing is overdue. I advised them as a security policy I do not give out PII to unauthenticated callers, asked for a reference number and a return phone number. The number I was given is not listed on the ATO website so I did not return the call. Found some forum posts claiming the number is for return callers who have a reference number. Still, if I can’t find the number listed on offical media I don’t call back. I’m trying to think of a way the average person could authenticate a caller. I’m not security or technology expert so my knowledge in this area is limited. Any ideas?

asfdsfggtfd 8y ago
I think just call back on one of their listed numbers and explain.
- TheSpiceIsLife 8y ago
  It seems so obvious now you've pointed it out. I do like to over complicate things.
  - asfdsfggtfd 8y ago
    This is the advice given by banks and anti-fraud agencies. NB in some countries landlines can remain on a call for several minutes after the call receiver has hung up. A phisher will play a dial tone etc to make it seem realistic. The advice is to either wait 10 minutes (longer?) or preferably call back on another line if you receive a suspicious call.
    - princekolt 8y ago
      Or try calling somebody else you know. If you land back on the same caller, you know they're playing you. =)
    - jsjohnst 8y ago

astura 8y ago

This seems like an easy problem to solve. Make the winner fill out the tax forms and send them directly to the IRS. The IRS informs the promotion they've received the tax forms, and verifies names, addresses, amount match. The promotion releases the prize to the winner.

toss1 8y ago
Might not be so easy -- it is like paying payroll -- you, not only the recipient, need to report the tax ID of the person/entity that you paid.
- astura 8y ago
  Right, so you provide that information to the winner to put on their form. No big deal.
  - toss1 8y ago
    Nope, you need to put the payee info on the forms that you submit as well as the recipient. If you are paying someone more than $600, you need to cut a 1099 form, which tells the category, such as interst, rent, misc, etc. (1099-Int, 1099-Misc, etc.). On the 1099, you must put the Tax Id of the recipient, which for a person is their SSN, and for another entity is typically their EIN. You submit your copy of the 1099, and they submit theirs. They need to match or the IRS see a red flag. So, no, you can't simply say "here's the form, you submit it". Source: I'm not a Tax Attny, but I live with one, and have co-owned several businesses that needed to cut and/or receive W-2s, 1099,s etc.

gambiting 8y ago

I was one of the very first developers with an app published on Google Play store, and as a "thank you" for having one of the first apps with 10k+ downloads(which wasn't difficult when number of apps on the store was measured in hundreds), Google wanted to send me the Nexus One phone - which was great, except that the email I got from them looked like scam, it was basically "hey you won a phone, click on this link and fill out this google spreadsheet with your details!" - no official google logo, it was just plain text email and the spreadsheet looked dodgy as hell. So I ignored it, until I read about the giveaway on a reputable site few days later - and yeah, I filled out the sheet and the phone arrived few weeks later. But it was very very easy to ignore it.

mikec3010 8y ago

I wonder how many were social security, retirees, or welfare recipients? I think those people will lose their benefits if they declare earnings. And perhaps they just don't think about it before they enter?