system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How do TV game shows tax people who get cash on the spot?

I see game shows like How too make a deal give away cash on the spot. Are these people taxed? I know if you win showcases etc taxes are collected on items, but what about cash handed on the spot?
gpt
Any cash prize (including lotteries) is generally considered income in the eyes of the IRS (or similar entity for other countries).  

The person/entity giving the money will report the transfer of money to the IRS (and in some cases, offer to withhold the expected taxes) , and it becomes the responsibility of the recipient to submit a payment of the expected owed taxes in a timely manner and to report the earnings when the time comes to file taxes for the year.