Prizes and awards can be included in the gross income of the recipient unless they are for:
The payer issues the check in the name of a governmental unit or a charity at the recipient's request.
When processing an IEEE award, it would be a good idea to notify the award recipient that his or her award will be taxable income unless he or she requests that payment be made to a governmental unit or a charity.
IEEE is required to issue an IRS Form 1099MISC to individuals paid amounts representing a prize or award. 1099s are not required when the individuals assigns the payment of the prize or award to a charity or governmental unit.
In the US, research grants may qualify as tax-free payments if they meet the requirements of scholarships and fellowships above.
When IEEE co-sponsors a conference with a for-profit-entity, IEEE must ensure that:
For more information on these or other tax related subjects, please contact the IEEE Tax Department: firstname.lastname@example.org.