I won a vacation from Phillip Morris/ Marlboro. I am trying to find a way to reduce the cost in taxes. Where can I find fair market value for this trip?====> To begin, you need to attempt to contact the contest or prize sponsor and attempt to negotiate with them. If the attempt to get them to lower the prize value voluntarily and the amount reported on the Form 1099-MISC, then you should call the IRS at (800) 829-1040, and explain your situation to them. You should then ask the IRS to send you what is known or used to be known as either Form 4598 or a prize value adjustment letter. Even if the IRS declines to send such a document, the fact that you contacted the IRS bolsters your claim that the prize was incorrectly valued, if you report a different value on your tax return.You will also need to give the IRS the payer information from the 1099 you received, as well as the details of how you arrived at your own alternative valuation figure.
Also, it is my understanding you can reduce the cost of taxes if you put money towards the trip in any way. I won this trip at a music festival that I had to pay over $500 to attend, is this an amount I could argue against what they are charging me for the taxes?====>it depends; once you incur any travel related expense that directly relates to your specific job function, you may be eligible to claim a deduction. Depending on your circumstances and provided you have the necessary documentation, you can claim the cost of transport and incidentals, and, if you were away overnight, even meals.