Suppose a contestant won a whole bunch of junk that he can't use, or a bunch of trips to places he would never want to go to. No cash or cars, just junk. Could he refuse to take delivery of his prizes just to avoid paying taxes on the value of the stuff that he never wanted in the first place?
Dear Jordan: It depends on the show's policy on your choices/responsibility. If the show is obligated to issue you a 1099, you are stuck. You could donate the items and possibly get a deductions for the value, depending on your total income and other factors governing Sch A. You could sell the items. You could have also not gotten up when you heard the words "come on down".
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
The issue is NOT accepting the prizes.
If he accepts the prize and then doesn't use them (say a voucher for a trip useable within one year), he's stuck.
Yes he can. I am VERY sure the show is not going to FORCE someone to take the prizes if they really don't want them at all.