Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

It appears I have won over one million dollars from Kentucky

Fried Chicken Malaysia International Promotion...
It appears I have won over one million dollars from Kentucky Fried Chicken Malaysia International Promotion. I am a US Citizen. Are these monies taxable. I am being questioned as to my method of receipt: either direct delivery to my home address in my hands or transferred into a bank.

Please advise.
Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
10/24/2013
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,141
Experience: Taxes, Immigration, Labor Relations
Verified

Lev :

Hi and welcome to our site!
As you are an US citizen - you are required to report all your worldwide income on your US income tax return.
That includes winning prices that are included into taxable income.
The winning is subject of mandatory withholding - so regardless if you will receive a check or the money would be transferred directly to your bank account - he winnings are subject to 25% regular gambling withholding.
The payer will issue you form W2G - to report the winning amount and withholding.

Lev :

Please be aware that sometimes - there might be fraud "promotions" - so if you are asked to pay any money upfront - you might want to be very careful and verify all information about your contacts.
Here is the address to verify - KFC Corporation 1441 Gardiner Lane Louisville, Kentucky 40213
Specific contacts in Malaysia :
Level 16, Wisma KFC, No. 17, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.
Tel: 03-2026 3388 (Hunting Line) Fax: 03-2078 9923

Customer:

Hi, Lev,

Lev :

Hi

Customer:

Great information and I appreciate the reference to the KFC Corp. I have been communicating with Kuala Lumpur and I checked the KFC Malaysia Season Promotion on the list of 2000 fraudulent promos and it is not on there. So I'm moving forward. I have not been asked for any monies. However, I am concerned about them preferring to deliver the check to me personally rather than using Option 2 transfer by wire. Do you have any idea why they would prefer the "in your hand" delivery, Option 1 rather than the wire transfer, Option 2. They also refer to an International promo remittance policy handbook (ILRPH). Do you know where to obtain this?

Lev :

From tax prospective - there is no difference.
As long as the payment will be in US dollars and your bank do not have additional charges for neither depositing a check nor for wire transfer - I do not see any difference.

Lev :

International promo remittance policy handbook (ILRPH) - when I googled that name - it pointed me to multiple lottery scam discussions. So - I am afraid that you would be asked for the upfront money at some point. So be very careful.
If there are any income tax liability or required withholding either in the US or in Malaysia - that money may not be requested upfront - but should be withheld from the amount due. As soon as you would be asked for money upfront - for any reason - that would be a warning signal.

Lev :

Here is an example - https://go4answers.webhost4life.com/Example/microsoft-corporation-49411.aspx


and there are many similar
Be advice that it is highly imperative that we inform you of some of the required procedures pertaining to filing for your claims with reference to clause fourteen, page thirty four of the International promo remittance policy handbook (ILRPH), you have two options from which you are to choose in receiving your prize money.
*OPTION ONE: VIA COURIER/POST:we will have his/her winnings cheque and certificate delivered at the winner’s doorstep.


*OPTION TWO:TRANSFER VIA BANK ACCOUNT:the funds will be transferred to the winner in cash via Online Bank Transfer.

Customer:

Here is the exact verbiage I received for Option Two:

Customer:

*OPTION TWO
TRANSFER VIA BANK ACCOUNT.

The winnings will be transferred to the winner in cash. Under option one, beneficiaries
will be required to go through the services of an affiliate delivery service. This delivery
service has been mandated with the task of dispatching all cheques of winners who
choose to opt for the courier option.

Lev :

That makes me very suspicious... "affiliate delivery service" might ask you for "delivery fees"
But still I suggest to verify.

Customer:

Thanks. You have been very helpful.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,141
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,141
30,141 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Tax Question: Non-Resident Withholding Tax, Franchise Tax
Tax Question: Non-Resident Withholding Tax, Franchise Tax Board, CA HISTORY: 1. The property is in California 2. The owner resides in outside of California 3. Metro Property Management collects monthl… read more
abci168
abci168
Principal
27 satisfied customers
Impact of tax changes on filing amended returns... Client
Impact of tax changes on filing amended returns... Client filed a 2016 tax return on time in 2017. If the tax laws change significantly, which laws apply when amended returns are filed... the tax laws… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
Suppose my taxable income in 220,000 this year and the tax
Suppose my taxable income in 220,000 this year and the tax rate is X up to 200K, but Y for 200and over, do I pay Y on the full 220K or just that above 200K? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Under current law a 100,000 taxable income pays $10,365 plus
Under current law a 100,000 taxable income pays $10,365 plus 25% of the amount exceeding $79,400 i.e. about $16,000. Under tax reform will the tax be $25,000? … read more
Lev
Lev
Tax Advisor
30,141 satisfied customers
I received a Beneficiary Claim Form from American Equity
I received a Beneficiary Claim Form from American Equity Investment Life Insurance Co. concerning my deceased Mother's policy (IRA). My question is this: should I have federal/state withholding and at… read more
abci168
abci168
Principal
27 satisfied customers
I filed for an extension to file my 2017 income tax return.
I filed for an extension to file my 2017 income tax return. I recently suffered a stroke - 6 weeks ago - and have been unable to finalize my return. I should be able to file it within the next 30 days… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
If your taxable income is $0 (actually negative) is there a
If your taxable income is $0 (actually negative) is there a penalty for late filing? Do you need to file at all? What is the 2016 filing deadline with an extension?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
Related to my previous question are the US beneficiaries of
Good afternoon, related to my previous question are the US beneficiaries of an offshore/ foreign trust obliged to report to the IRS that they are beneficiaries even when the trust had not distributed … read more
abci168
abci168
Principal
27 satisfied customers
Is an inheretance taxable income. What do you want to know?
What do you want to know? My question: is an inheritance a taxable income? … read more
abci168
abci168
Principal
27 satisfied customers
What tax form is filed to report dividends paid by US Corp?
What tax form is filed to report dividends paid by a US Corp which is owned by a Canadian Corp? I think it might be 1042S. I want to know the rate of WH.… read more
abci168
abci168
Principal
27 satisfied customers
I have no taxable income. I am 60 years pf age and a
I have no taxable income. I am 60 years pf age and a caregiver to my special needs daughter. She has a trust fund which pays me to be able to stay home and not work. I also receive SSI for being mothe… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Once the original single "income beneficiary" of a QSST
Once the original single "income beneficiary" of a QSST Trust dies, and the secondary principal beneficiaries take over, how do you report that on the QSST? … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
A friend receives taxable income that he can characterize
A friend receives taxable income that he can characterize EITHER as self-employment or non-SE. If he chooses the SE route, it will increase his Social Security payment, almost immediately as he is on … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Undistributed taxable income previously taxed. Have 3
Undistributed taxable income previously taxed. Have 3 shareholders with balances due to them from previous years. Can it be paid all in one year to bring their amounts owing to zero until the next pro… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
I filed a joint return through TurboTax. My taxable income
I filed a joint return through TurboTax. My taxable income was $87,829. Using the IRS's published tax rate schedule, the tax I owe should be $13,499.25. TurboTax calculated I owe $17,787 (this compare… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
If you do not work, retired, and receive no taxable income,
If you do not work, retired, and receive no taxable income, do you have to file a tax form… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
727 satisfied customers
I need to file Income Tax Withholding for the require of
I need to file Income Tax Withholding for the require of housing loan but I don't have,I'm self employed.how?… read more
Lev
Lev
Tax Advisor
30,141 satisfied customers
Ax return was rejected for last years taxable income as
ax return was rejected for last years taxable income as being incorrect (Line 37). A review of my tax copy and computer data showed the same number as we claimed. … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
17,979 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x