Don't pay them but do pay the IRS. You must list all prizes as income along with any taxes paid on your return. If you won a car, the value of the car will go on your return as income. You certainly must pay taxes on the value of the car. Depending on your tax income bracket after adding the value of the car, you need for the tax due to be less than $1,000 to avoid penalties.
If 2021 won the car, all you can do is add the car to your income and pay the tax bill.
If 2022 won the car, you should determine your tax liability and make estimated payments.
- Please use Tax bracket calculator to determine how much you will owe in taxes after adding the value of the car
- Make estimated payments, see Form 1040-ES, Estimated Tax for Individuals.
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