Posted Mar 16, 2011 04:05 pm CDT
Weight gain isn’t the only hazard of winning a year’s supply of free doughnuts.
Houston Astros fan Bob Choate was a winner during fan appreciation day last fall: The prize was a year’s supply of coupons for doughnuts and coffee, the Houston Chronicle reports. Now he’s hearing from the Internal Revenue Service, which says he owes taxes on $927.61 in free coffee and doughnuts.
Thompson & Knight tax lawyer Roger Aksamit summed up Choate’s dilemma for the newspaper. “If you get paid in doughnuts,” he said, “you’ve got to pay in dough.”
Hat tip to TaxProf Blog.