Cottage industry helps lottery winners dodge taxes
With few rules or law enforcement to stop it, a cottage industry has popped up to help lottery winners avoid taxes, child support, and other debts, potentially costing the state and federal governments millions in lost revenue.
Enterprising merchants risking charges of aiding tax evasion are openly hawking losing lottery tickets on Craigslist and eBay to help winners offset the profits with phony gambling losses.
If you need the losers to write off for taxes, read one ad, since removed, f ...
Aug 7, 2014, 11:33 am - Lottery News forum
How lottery legend Joan Ginther used odds, Uncle Sam to win millions
This story has been removed at the author's request.
By Peter Mucha, Philly.com
Second of three parts See Part 1
Joan Ginther wasn't necessarily lottery loco.
Maybe it wasn't a case of dumb luck, but smart luck.
She may have purchased at least 80,000 pricey tickets worth $2 million or more, according to expert analysis of 28 instant prizes she won, including three totalling $15 million.
If she also was the source of two dozen lesser wins by her friend Anna Morales, Ginther mig ...
Jul 2, 2014, 10:07 am - Lottery News forum
Tax on Kentucky Lottery tickets no longer being considered
Your outrage was heard
Kentucky lawmakers won't pursue a 6% tax on lottery tickets as a source of revenue to shore up the state's financially troubled pension system for government retirees.
House Speaker Greg Stumbo said that idea was rejected out of concern that a tax might have stifled sales of lottery tickets that generate money for education programs in Kentucky.
Instead, Stumbo said lawmakers will unveil legislation on Tuesday that will call for the lottery to create new games, in ...
Feb 26, 2013, 1:18 pm - Lottery News forum
Kentucky Democrats propose taxing lottery tickets
Democratic House leaders want to add a 6 percent sales tax to Kentucky Lottery purchases and expand the selection of lottery games as a way to increase funding for the state's ailing pension system.
House State Government Chairman Brent Yonts, D-Greenville, said adding a 6 percent sales tax on lottery games could generate about $49 million a year for the state. Adding additional games to the lottery could generate an additional $70 million to $90 million, he said.
Combined, Yonts predicted ...
Feb 22, 2013, 11:34 am - Lottery News forum
Pa. man pleads guilty in bizarre lottery tax case
A 70-year-old Pennsylvania man faces up to a year and half in prison for having more than 40 people cash in lottery tickets worth $520,000 so he could avoid paying federal income tax on the winnings.
Sherman Friend, of McClellandtown, faces a sentence of 12 to 18 months in federal prison when he is sentenced Feb. 15 on the tax evasion charge he pleaded guilty to Friday before U.S. District Judge Arthur Schwab in Pittsburgh.
Assistant U.S. Attorney Nelson Cohen said Friend won big when he b ...
Sep 28, 2012, 12:45 pm - Lottery News forum
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-Sta ...
Dec 20, 2011, 7:42 am - Lottery News forum
Professional lottery player wins tax dispute
Big winnings, tiny taxes
Several times a week, Clarance W. Jones does something most people can only dream of: He cashes in bunches of winning lottery tickets.
And even better, he has found a way to pay barely any taxes on the massive take.
Over the past decade, the 73-year-old from Lynn has redeemed more than 10,000 tickets from the state lottery more than any other person worth a total of more than $18 million.
He has also long fought efforts by the state to collect considerable ta ...
Nov 5, 2011, 9:45 am - Lottery News forum
Legislators grill Ark. lottery financial officer
The Arkansas lottery's chief financial officer said Wednesday that a $90,000 tax penalty probably resulted because of a data input error, though legislators remained puzzled over how the lottery's director wasn't told of the problem for more than three months.
Lottery director Ernie Passailaigue told members of the Lottery Oversight Committee that he was disappointed he wasn't told of the Internal Revenue Service problem until long after it had emerged.
The IRS assessed the penalty because ...
Aug 25, 2011, 10:56 am - Lottery News forum
Ct. to deduct back taxes from lottery winnings
Stamford resident's idea inspired legislation
Legislation (HB6270), introduced by State Representative Gerald Fox III (D-Stamford) requiring the Connecticut Lottery to deduct delinquent taxes and penalties before distributing a lottery prize of $5,000 or more to a winner, was ceremoniously signed into law Friday by Governor Dannel Malloy at the State Capitol.
The new law applies to winning lottery tickets redeemed on or after January 1, 2012. There is currently about $400 million in state ...
Aug 15, 2011, 6:02 pm - Lottery News forum
Two get probation in scheme to avoid taxes on lottery win
A pair of men who conspired to hide from the tax man that one of them won $500,000 in the lottery were each sentenced to two years of probation Tuesday.
Pennsylvania convenience store owner Charig R. Patel and frequent lottery player Kendrick D. Francis each admitted to conspiracy to defraud the IRS and making a false statement on a tax return in March and faced up to three years in a federal prison.
However, attorneys for each of the men argued to Chief District Judge Gregory M. Sleet tha ...
Jul 13, 2011, 9:25 pm - Lottery News forum