We are looking to run a sweepstake soon and wondering about FMV/ARV

[kriscii]

We are looking to run a sweepstake soon that will have an ARV of around $40-50k but the cost to us will probably be around $10k or less. The sweep will run globally but do not want entrants in the US to suffer a big tax bill. Is it normal to state a FMV in the rules somewhere to indicate what we put on the 1099 as the FMV as we don't want to discourage people from entering?
Thanks
Chris

 

[amyshulk]

FMV is not always the ARV & savvy sweepers know How to Dispute an ARV on Your Sweepstakes Taxes - for those who don't;

Thread: ***ARV and your taxes*** {TY to LIDARKSIDE}
https://www.sweepsadvantage.com/forum/questions-and-answers/17790-arv-your-taxes-ty-lidarkside.html

Information courtesy of this link ~ How to Dispute an ARV on Your Sweepstakes Taxes

When you win a sweepstakes prize, you are only required by the IRS to report the fair market value (FMV), not the sponsor's approximate retail value (ARV); but how do you go about finding out what the FMV is and how do you handle the difference on your taxes? Find out here.

How to Dispute an ARV on Your Sweepstakes Taxes