LAST MINUTE TRAVEL $1 HOTEL IS A SCAM
02-12-2009, 02:32 PM
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LAST MINUTE TRAVEL $1 HOTEL IS A SCAM
Just got this email after booking 3 nights at a hotel for $1/night on their promo (see below) but THIS IS BULL$H!T.
I agreed to pay $1 per night, and they ended up giving me the room for free.
Now they want to 1099 me?!
I have a call into their lawyers and will post an update with what they say. But here is my problem:
1) I didn't get this FOR FREE. When I submitted my agreement, they were going to charge me $1 per night (negotiated rate) on my credit card, which I provided.
Then, upon completing the process, my confirmation page said that they were giving it to me for free (something cute like, "give the bellboy the $3) but I never agreed to that. It was after booking the room.
2) This is not a 'PRIZE.' This is a negotiated rate at a hotel. I'm sure priceline.com doesn't 1099 their customers if they negotiate a lower per-night rate than the standard rack-rate.
Thoughts?!
I'm really steamed about this. I've contacted my accountant to see how much the taxes could be...
From: "LastMinuteTravel.com"
Date: Thu, 12 Feb 2009 17:28:45 -0500
Subject: The World for $1 - Follow Up
Congratulations David on your booking during The World for $1 sale!
As with any promotion such as The World for $1 sale, LastMinuteTravel.com is required to issue you a 1099 tax form before we can issue your prize. In order to issue the 1099, we need your social security number and to confirm your mailing address. For your convenience we have supplied the following link where you can quickly fill in your information or you can contact us as soon as possible at: 1-800-442-0568. If you do have questions, please view the FAQ below.
Supply your information HERE.
Again, congratulations on your free hotel stay.
The LastMinuteTravel.com team
World for $1 1099 Form Frequently Asked Questions
When will I receive my 1099?
Last Minute Travel will be mailing 1099 forms within the next 4 weeks.
What is a 1099 form?
A 1099 form is a tax form the IRS mandates we mail out to you. Please consult your tax advisor for more information regarding IRS 1099 tax forms.
How is it free if I need to pay taxes?
LastMinuteTravel.com does not require you to pay taxes, the IRS does. Additionally, we cannot award you this prize until we meet our requirement, which is to send you the 1099 form.
Can I pay $1 a night to avoid paying the taxes?
No, there is no cost to the hotel, it is either free or full price.
How much in taxes will I need to pay?
As LastMinuteTravel.com is not a tax authority, we cannot give you the exact amount you are required to pay, please consult your tax advisor for more information.
What if I don't want to give my social security number?
We must collect this information and issue the 1099 form in order to issue your prize; therefore, we will be forced to cancel the booking if you do not provide this information.
Can I let you know what I want to do later?
You may, but you must call LastMinuteTravel.com and provide the information by Friday, February 20. With out your social security number we cannot issue your prize.
Why should I have to pay taxes if it wasn't t in the Terms and Conditions?
Any time you receive something over a certain value, such as this, you legally have to claim it in your taxes - regardless of the terms and conditions, Please consult your tax advisor for more information.
Where can I get information on 1099 forms?
Please consult your tax advisor for more information regarding IRS 1099 tax forms.
Is it true if my hotel value is under $600 I won't need to file a 1099-misc form?
LastMinuteTravel.com is required to issue 1099 forms to anyone who has received a prize over a fair market value of $600. The value of your prize is based off of our prices found on LastMinuteTravel.com
I read online that is this is not a contest I won't need to pay taxes, is that true?
No, LastMinuteTravel.com is required to issue a 1099 form for the World for $1 sale, and you are responsible to claim the fair market value of this prize on your taxes.
On Facebook it states that I don't need to pay taxes, is that true?
You are still responsible for the tax on your prize. LastMinuteTravel.com did work very hard to ensure that all information online was accurate; however user generated content is very difficult to control, so we are not responsible for this sort of user content.
You will need to consult your tax advisor on how this will affect you and on any other tax related questions. LastMinuteTravel.com is not a tax authority; therefore we cannot advise you the exact regulations.
************************************************** ****************
I agreed to pay $1 per night, and they ended up giving me the room for free.
Now they want to 1099 me?!
I have a call into their lawyers and will post an update with what they say. But here is my problem:
1) I didn't get this FOR FREE. When I submitted my agreement, they were going to charge me $1 per night (negotiated rate) on my credit card, which I provided.
Then, upon completing the process, my confirmation page said that they were giving it to me for free (something cute like, "give the bellboy the $3) but I never agreed to that. It was after booking the room.
2) This is not a 'PRIZE.' This is a negotiated rate at a hotel. I'm sure priceline.com doesn't 1099 their customers if they negotiate a lower per-night rate than the standard rack-rate.
Thoughts?!
I'm really steamed about this. I've contacted my accountant to see how much the taxes could be...
From: "LastMinuteTravel.com"
Date: Thu, 12 Feb 2009 17:28:45 -0500
Subject: The World for $1 - Follow Up
Congratulations David on your booking during The World for $1 sale!
As with any promotion such as The World for $1 sale, LastMinuteTravel.com is required to issue you a 1099 tax form before we can issue your prize. In order to issue the 1099, we need your social security number and to confirm your mailing address. For your convenience we have supplied the following link where you can quickly fill in your information or you can contact us as soon as possible at: 1-800-442-0568. If you do have questions, please view the FAQ below.
Supply your information HERE.
Again, congratulations on your free hotel stay.
The LastMinuteTravel.com team
World for $1 1099 Form Frequently Asked Questions
When will I receive my 1099?
Last Minute Travel will be mailing 1099 forms within the next 4 weeks.
What is a 1099 form?
A 1099 form is a tax form the IRS mandates we mail out to you. Please consult your tax advisor for more information regarding IRS 1099 tax forms.
How is it free if I need to pay taxes?
LastMinuteTravel.com does not require you to pay taxes, the IRS does. Additionally, we cannot award you this prize until we meet our requirement, which is to send you the 1099 form.
Can I pay $1 a night to avoid paying the taxes?
No, there is no cost to the hotel, it is either free or full price.
How much in taxes will I need to pay?
As LastMinuteTravel.com is not a tax authority, we cannot give you the exact amount you are required to pay, please consult your tax advisor for more information.
What if I don't want to give my social security number?
We must collect this information and issue the 1099 form in order to issue your prize; therefore, we will be forced to cancel the booking if you do not provide this information.
Can I let you know what I want to do later?
You may, but you must call LastMinuteTravel.com and provide the information by Friday, February 20. With out your social security number we cannot issue your prize.
Why should I have to pay taxes if it wasn't t in the Terms and Conditions?
Any time you receive something over a certain value, such as this, you legally have to claim it in your taxes - regardless of the terms and conditions, Please consult your tax advisor for more information.
Where can I get information on 1099 forms?
Please consult your tax advisor for more information regarding IRS 1099 tax forms.
Is it true if my hotel value is under $600 I won't need to file a 1099-misc form?
LastMinuteTravel.com is required to issue 1099 forms to anyone who has received a prize over a fair market value of $600. The value of your prize is based off of our prices found on LastMinuteTravel.com
I read online that is this is not a contest I won't need to pay taxes, is that true?
No, LastMinuteTravel.com is required to issue a 1099 form for the World for $1 sale, and you are responsible to claim the fair market value of this prize on your taxes.
On Facebook it states that I don't need to pay taxes, is that true?
You are still responsible for the tax on your prize. LastMinuteTravel.com did work very hard to ensure that all information online was accurate; however user generated content is very difficult to control, so we are not responsible for this sort of user content.
You will need to consult your tax advisor on how this will affect you and on any other tax related questions. LastMinuteTravel.com is not a tax authority; therefore we cannot advise you the exact regulations.
************************************************** ****************
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All thats gonna happen is they have to pay it in the end? 
02-12-2009, 03:54 PM
#10
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Join Date: Jan 2008
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Okay, I appreciate you thoughts on this...keep 'em coming.
So far my options are:
1) give them a fake ssn which I don't want to do b/c it opens me up for tax evasion or
2) buy a gun.
Anyone else?
So far my options are:
1) give them a fake ssn which I don't want to do b/c it opens me up for tax evasion or
2) buy a gun.
Anyone else?