Update:
If you disagree with the prize value reported on the 1099-MISC, the IRS asks that you attach a copy of the 1099-MISC and a written statement to your tax return, and mail the return instead of e-filing. The written statement should have a concise explanation of why you are reporting a different value, but don't include other proofs. If the IRS has questions later, or if they lose your attached statement, they will send a letter and then you would send them proof (such as, copies of web pages, store ads, or catalog prices showing that the item's fair market value is less than reported on the 1099-MISC.)
If you want to e-file, report the lower value but expect to get an inquiry letter in a few months.
