It may seem a little harsh when you win that free holiday that the IRS Taxes comes knocking on your door asking you to pay tax on it. Well, unfortunately one of the hidden costs of doing sweepstakes is that you must pay taxes on sweepstakes winnings. So if you don’t want to have IRS tax problems be informed. The implications of not recognizing the need to pay taxes on sweepstakes winnings can be significant. You may be doing sweepstakes to supplement your income because you do not have much spare cash for those kinds of luxuries. Well, if you win some nice prizes be warned that they could come at a heft price as the taxes on some of the higher end physical non-monetary prizes could be significant.
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