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Connecticut to audit lottery winners for back taxes

Connecticut LotteryConnecticut Lottery: Connecticut to audit lottery winners for back taxes

After successfully targeting deadbeat parents, the state of Connecticut is going after tax evaders' lottery winnings.

Beginning Dec. 31, a new law will take effect requiring the Connecticut Lottery Corporation to deduct delinquent taxes, crosschecked with the Department of Revenue Services, from any claim of $5,000 or more.

"If someone is lucky enough to win a lottery prize and they also owe back taxes, it is reasonable to collect those taxes at that time," co-sponsor Rep. Gerald Fox, D-Stamford, said.

The new law — passed unanimously by the General Assembly earlier this year and signed by Gov. Dannel P. Malloy — initially would have gone into effect in October.

Fox said extra time was needed for lottery and DRS officials to work out the details.

The proposal was based on another state program, begun in 2004, that crosschecks lottery winners with a database of individuals owing child support.

According to the Lottery Corporation, that effort has, over the past seven years, recouped $1.5 million and made going after tax delinquents "a natural extension."

Both laws were pursued by Anthony Martino, a support enforcement officer in Stamford for the Judicial Department.

In testimony submitted in February to the Legislature, Martino explained the rationale for starting with $5,000 winners.

"It is impossible to check all winners of any ticket ... The Lottery Commission will cash smaller winnings at any lottery dealer, and it will cash winning tickets ranging from $600 to $4,999 at one of three stations in the state," Martino wrote. "However, all winning tickets of $5,000 or more must be cashed at the Lottery Headquarters. These are the winners that are checked against a database of obligors owing child support."

Martino, at the time, also suggested legislators consider going a step further and turning their attention to visitors to the state's Indian gaming casinos who win big while simultaneously failing to pay their back taxes.

Fox said that matter has not been discussed.

Under state law, lottery employees are forbidden from making public any tax information received from the DRS.

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20 comments. Last comment 2 years ago by CDanaT.
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Monkey Butt, USA
United States
Member #54569
August 23, 2007
1124 Posts
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Posted: December 20, 2011, 9:25 am - IP Logged

After successfully targeting deadbeat parents, the state of Connecticut is going after tax evaders' lottery winnings.

Beginning Dec. 31, a new law will take effect requiring the Connecticut Lottery Corporation to deduct delinquent taxes, crosschecked with the Department of Revenue Services, from any claim of $5,000 or more.

"If someone is lucky enough to win a lottery prize and they also owe back taxes, it is reasonable to collect those taxes at that time," co-sponsor Rep. Gerald Fox, D-Stamford, said.

The new law — passed unanimously by the General Assembly earlier this year and signed by Gov. Dannel P. Malloy — initially would have gone into effect in October.

Fox said extra time was needed for lottery and DRS officials to work out the details.

The proposal was based on another state program, begun in 2004, that crosschecks lottery winners with a database of individuals owing child support.

According to the Lottery Corporation, that effort has, over the past seven years, recouped $1.5 million and made going after tax delinquents "a natural extension."

Both laws were pursued by Anthony Martino, a support enforcement officer in Stamford for the Judicial Department.

In testimony submitted in February to the Legislature, Martino explained the rationale for starting with $5,000 winners.

"It is impossible to check all winners of any ticket ... The Lottery Commission will cash smaller winnings at any lottery dealer, and it will cash winning tickets ranging from $600 to $4,999 at one of three stations in the state," Martino wrote. "However, all winning tickets of $5,000 or more must be cashed at the Lottery Headquarters. These are the winners that are checked against a database of obligors owing child support."

Martino, at the time, also suggested legislators consider going a step further and turning their attention to visitors to the state's Indian gaming casinos who win big while simultaneously failing to pay their back taxes.

Fox said that matter has not been discussed.

Under state law, lottery employees are forbidden from making public any tax information received from the DRS.

Looks like the state of Connecticut is getting greedy again.

Instead of trying to find ways to empty the pockets of the lottery winners and casino winners, why not eliminate some of the dead weight they've picked up over the years?

Yes, people should pay their child support and their taxes. No argument here.

But to start putting laws on the books like this is just the starting point to other laws that will eventually make it impossible for you to purchase a bottle of water without the government's permission and a background check.

    dpoly1's avatar - driver
    PA
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    Member #66141
    October 16, 2008
    1434 Posts
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    Posted: December 20, 2011, 9:59 am - IP Logged

    A very good reason not to live in Connecticut !!!!!!!!!!!!!!!!!!!!!!!!!!!

    Greedy Politicians should be put in jail for violating their fiduciary responsibilities by spending money like they can just print it  !!!!!!!!!!!!!!!!!!!!!!

      dpoly1's avatar - driver
      PA
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      Member #66141
      October 16, 2008
      1434 Posts
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      Posted: December 20, 2011, 10:23 am - IP Logged

      On a positive note, I am preparing to win about $73,840,000 after 35% taxes tonite!  Dance Green with money is the only way to go green. & Wealth is not greed, it is opportunity !

       

      Anyone that doesn't think that $39,790,000 in taxes is enough is cordially invited to move to the Paradise of North Korea ! Or the Socialist State of Connecticut !

        Set4life's avatar - 2554
        East Hampton, NY
        United States
        Member #41995
        June 25, 2006
        1134 Posts
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        Posted: December 20, 2011, 12:40 pm - IP Logged

        Im not suprised, american tax payers need to pay for this phony afgan war.  Then off to another country lol.

             $Group Hug$

             FOR THE WIN!

          RJOh's avatar - chipmunk
          mid-Ohio
          United States
          Member #9
          March 24, 2001
          17726 Posts
          Online
          Posted: December 20, 2011, 3:14 pm - IP Logged

          I always thought all states with lotteries already had such rules in place and that was the reason some stores would cash winners larger than $600 for a price.

          * you don't need more tickets * 
          * just the right ticket * 
             Wink 

            maringoman's avatar - kobold
            Massachusetts
            United States
            Member #37433
            April 14, 2006
            1885 Posts
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            Posted: December 20, 2011, 4:19 pm - IP Logged

            Unless some guys are reading another article, what I read seems to make perfect sense.

            Checking the lottery winner's child support payment history before handing over the check is saving time and energy.

            If dead beats don't support their offsprings the rest of us law abiding citizens are forced to do it. I hate that.

            It's a futile effort.

              JonnyBgood07's avatar - Patriots logo1.jpg
              Connecticut
              United States
              Member #61623
              May 29, 2008
              19320 Posts
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              Posted: December 20, 2011, 4:28 pm - IP Logged

              ...always amazes me how fast they could enact laws dealing with"getting" monies whether this or outright taxation,but when the people as a whole want something it takes yearsConfused... if at all.

              Should've been a no brainer anyhow since deadbeat dads/moms and such just drain the welfare spicket outright dry here.How they've not done this up till now is sheer idiocy.Bad enough you have have to wait a lifetime to get a check cut to you when you're there because of the time it takes to see if you have warrants or other outstanding sh*t.

              Also it is common knowledge from the people i've worked with that they just get their parents or grandparents to go to the lottery to collect the winnings anyhow.

              "...Life is not a matter of holding good cards,but sometimes playing a poor hand well...
              'Fortune Cookie wisdom'

               


                Grovel's avatar - f800e6a39fbfea795d1dcbb09f2244
                Little Rock, AR
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                December 19, 2008
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                Posted: December 20, 2011, 5:22 pm - IP Logged

                Can someone explain to me how it is wrong to collect money that someone was supposed to pay but cheated the state out of it.

                  Avatar
                  New Member
                  colorado springs, colorado
                  United States
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                  October 20, 2010
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                  Posted: December 20, 2011, 7:13 pm - IP Logged

                  Like RJoh, I assumed all states did this. I seem to recall reading an article here on LP a few weeks back about Massachussetts going after a lottery winner who'd won millions. They assumed he was a "10 percenter": someone who cashes tickets for others who are trying to avoid paying child support or back taxes. So apparently MA does this as well. Does anyone know if all states do it? Or which ones do and don't?

                    haymaker's avatar - Lottery-012.jpg
                    egg harbor twp.south jersey shore
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                    Member #112972
                    June 29, 2011
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                    Posted: December 20, 2011, 7:20 pm - IP Logged

                    Like RJoh, I assumed all states did this. I seem to recall reading an article here on LP a few weeks back about Massachussetts going after a lottery winner who'd won millions. They assumed he was a "10 percenter": someone who cashes tickets for others who are trying to avoid paying child support or back taxes. So apparently MA does this as well. Does anyone know if all states do it? Or which ones do and don't?

                    not sure about other states but,nothing gets by in jersey.

                    Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

                      dpoly1's avatar - driver
                      PA
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                      October 16, 2008
                      1434 Posts
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                      Posted: December 20, 2011, 7:36 pm - IP Logged

                      Can someone explain to me how it is wrong to collect money that someone was supposed to pay but cheated the state out of it.

                      Today I learned that Connecticut is the worst State for overall taxes. That means that they spend money like water. That is why I say that they can go pound salt !   Smash

                        rdgrnr's avatar - walt
                        -Ridge Runner- Oracle of the Appalachians
                        Way back up in them dadgum hills, son!
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                        Posted: December 20, 2011, 8:05 pm - IP Logged

                        Can someone explain to me how it is wrong to collect money that someone was supposed to pay but cheated the state out of it.

                        Well God forbid someone withheld money that the government could have pissed away or made available for politicians to steal.

                        Heavens to Murgatroid! Exit stage left!


                                                                     
                                             
                                                                 

                         

                         

                         

                         

                                                                                                                           

                        "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                    --Edmund Burke

                         

                         

                          Grovel's avatar - f800e6a39fbfea795d1dcbb09f2244
                          Little Rock, AR
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                          December 19, 2008
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                          Posted: December 20, 2011, 8:49 pm - IP Logged

                          Well God forbid someone withheld money that the government could have pissed away or made available for politicians to steal.

                          Heavens to Murgatroid! Exit stage left!

                          So you can break a law just because you do not agree with it?

                            CTNY's avatar - aim
                            New Haven, CT - Queens, NY
                            United States
                            Member #98742
                            October 13, 2010
                            3148 Posts
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                            Posted: December 20, 2011, 9:51 pm - IP Logged

                            Looks like the state of Connecticut is getting greedy again.

                            Instead of trying to find ways to empty the pockets of the lottery winners and casino winners, why not eliminate some of the dead weight they've picked up over the years?

                            Yes, people should pay their child support and their taxes. No argument here.

                            But to start putting laws on the books like this is just the starting point to other laws that will eventually make it impossible for you to purchase a bottle of water without the government's permission and a background check.

                            Greedy Again? Try Always was...

                            The goal is to approach the Pick 3 & Pick 4 game sensibly and systematically!! Wink

                             I'm not like the guy who predicted the end of the world and nothing happened.