FlyerTalk Forums - View Single Post - [Consolidated] 1099s for miles & cash rewards from all banks
Old Feb 24, 2011, 7:04 pm
  #66  
FWAAA
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Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
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Here's a thread discussing a guy who refused an AA prize of 12 round-trip tickets that AA valued at a stunning $52,000:

http://www.flyertalk.com/forum/ameri...-declines.html

When you win a non-cash prize (car, motorcycle, house, etc) in a contest, in certain cases, the contest sponsors must collect 20% of the value from the winner and remit it to the IRS as withholding. That causes non-cash prizes to be turned down rather frequently, especially when the contest sponsor provides an alternate cash prize (which is always accepted).
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