[robbiehuang]

Hi,

I won a Dell 26 inch LCD TV in a sweepstake in 2005, with a MSRP of $1,500. Dell did not ship the TV until Jan 2006, so I will report it as income as a part of my 2006 return. Later on I received 1099 form with the amount of $1,500. However, on Dell's website, the receipt showed the price was $980.74. Besides, as of today, the price for a 26 inch TV (newer model) on Dell's website costs only $999.

I am wondering whether I could report $980 instead of $1500 for my tax return. What form(s) do I need to fill to justify the difference?

Thanks a lot!

[RickJ]

As for the year, go by the year that the 1099 says it's for.

As for the amount, see if Dell will send a corrected one.

I'd think the website price should be considered accurate for the IRS, so if Dell refuses - and a more specific answer is not posted soon, I'd call the IRS at 800-829-1040 and ask them how to handle the incorrect 1099.

You'll be surprised to learn that nowadays you get a human on the line pretty quickly with them.

[taxsearcher]

I think Rickj's advice is really good. Technically you do not have to report more than the appropriate fair market value. But if what you report differs from the 1099 then you'll attract attention. So call Dell. They should oblige.

[robbiehuang]

Thank you guys, you are very helpful on this matter. I will call dell and let them issue a new 1099.

[AtlantaTaxExpert]

All advice is valid; I have nothing to add.