Prize winners note: Uncle Sam wants share of winnings p.

By: Tony Case NOTICE TO ALL Pulitzer winners: Unless you plan to give away your prize money, remember that Uncle Sam has declared a cut.
The federal tax law says cash winnings related to Pulitzers, the Nobel Prize and other awards "in recognition of past accomplishments" are taxable?certainly something for this year's winners to keep in mind next April.
However, prizes are not included in an individual's income if all the following conditions apply: the winner was selected without any action on his or her part to enter the contest proceeding, the winner is not required to perform "substantial future services," and (this is the important part) the award money is "transferred directly to a governmental unit or tax-exempt charitable organization."