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Message: [QUOTE="Brochacho, post: 3964680, member: 705"] Depends. What kind of return do you file? Have you been audited before? There's no real authoritative guidance on this. Tax court is inconsistent. $10,000 underreported income isn't going to set off any alarms on the IRS end - we're talking about $2,400 that would be owed (assuming off your total tax estimate). Your FMV assessment seems reasonable. I'd accept it - but there would be discretion involved by the auditor (if you're even audited) and it would be taken into context of your entire return. The only thing I didn't see you mention and not sure if you're aware of it but with a prize of that size the sponsor is supposed be withholding 25% of the ARV for income taxes. [/QUOTE]