My question involves independent contractors in the state of: California
I am an independent contractor for a company that is based out of state and I was awarded a prize based on work that I've done for them. They will be putting the value of the prize on my 1099 along with all my other payments.
Do they usually add sales tax to the value of merchandise given on the 1099?
Also, has anyone had a dispute where the client over-valued the value of the merchandise and refused to correct it? I do have proof of list price of item around the date I won it.

