One of our television stations will be conducting a sweepstakes in May with a viewer winning a 3 year car lease – see prize description below.  Their question:  So that the winner does not have such a huge tax hit for 2011, is it possible to issue a 1099 each year, prorating this year’s amount, and then dividing the amount for the last 2 years?

One (1) winner will receive a paid 3 year lease on a 2011 car from, retail value $6,084.  Winner must have a valid state drivers’ license, provide proof of insurance, and comply with all other lease terms. Winner is responsible for excise or property tax, MV fees, excess wear and tear, physical damage, maintenance and mileage over 12,000 annually or 36,000 total.