- Report: #76906
Complaint Review: D.L. Blair - Blair Nebraska
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Author Confirmed
Why?
D.L. Blair
1548 Front Street Blair, 68008 Nebraska, U.S.A.
Phone:
402-426-4701
Web:
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D.L. Blair ripoff retail value of prize $360.00 they claim retail value is $1,010.00 and are sending 1099 to IRS and will not change amount Blair Nebraska
I entered a sweepstakes called The Best Things in Life are Basic 2003 Sweepstakes. On December 2nd I was notified that I had won a Craftsman Tool Kit and that they would be sending a 1099 form to the IRS reflecting the value of the prize at $1,010.00.
After the prize arrived I was amazed that such a small tool set could be so expensive. I decided to check into the prices of these tools onlne. I found the tool box with the product number and it sales for $59.99
I could not find the 270 pc.tool set but found a 271 pc. that sold for $299.00. I called D.L. Blair and ask them to put the correct value on the 1099. I was told that this was the retail value when prize was purchased for contest and that I would need to dispute this when I did my taxes.
I explained to them that would be setting myself up for a audit and I would rather not handle it that way. The taxes I will have to pay on the 1099 will be $300.00 on a prize valued at $360.00. D.L. Blair didn't care.
Lisa
Topeka, Kansas
U.S.A.
After the prize arrived I was amazed that such a small tool set could be so expensive. I decided to check into the prices of these tools onlne. I found the tool box with the product number and it sales for $59.99
I could not find the 270 pc.tool set but found a 271 pc. that sold for $299.00. I called D.L. Blair and ask them to put the correct value on the 1099. I was told that this was the retail value when prize was purchased for contest and that I would need to dispute this when I did my taxes.
I explained to them that would be setting myself up for a audit and I would rather not handle it that way. The taxes I will have to pay on the 1099 will be $300.00 on a prize valued at $360.00. D.L. Blair didn't care.
Lisa
Topeka, Kansas
U.S.A.
1 Updates & Rebuttals
John
Memphis,Tennessee,
U.S.A.
This Is A Tax Scam
#2Consumer Suggestion
Tue, January 13, 2004
The 1099 issued by DL Blair is supposed to reflect the 'fair market value' of the prize. The IRS defines fair market value as the amount a willing buyer would pay a willing seller. I'm sure DL Blair paid close to the $300 for the prize. If they get you to accept the higher value declared on the 1099 they will profit by claiming that value as a business expense and pocketing the taxes that they don't have to pay on it. Definitely a tax scam. Make a copy of the 1099 and send a complaint to the regional IRS office closest to the DL Blair headquarters. Send the other pricing documentation you have found as justification for having the value declaration lowered. The IRS will investigate. They will ask Blair to prove what they paid for the prize. Send a copy of the complaint to the Nebraska attorney general. Who knows, if the IRS finds tax fraud you may get the standard 5% of any tax deficiencies uncovered.
