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
N.J. woman suing state over lottery tax
State retroactively slapped her with $1.58 million in taxes
A Rockaway, New Jersey, woman who won a $14.9 million prize in the New Jersey Lottery's Pick 6 drawing in 2009 is suing the state to get a $1.58 million income tax refund she says she is owed.
Kimberly Wearin's lawsuit, made public today in Superior Court in Morristown, says that when she won the prize on June 4, 2009 and took it as a lump sum, winnings from the state lottery were excluded from taxable income, under state law.
...
Jun 7, 2011, 5:21 pm - Lottery News forum
New Hampshire repeals taxes on lottery prizes
Lottery commission celebrates with Tax Repeal Tea Party
Starting Monday, New Hampshire residents no longer have to pay taxes on their lottery winnings.
The state imposed a 10 percent tax on gambling winnings over $600 in 2009, but the tax was repealed by the current Legislature under a bill going effect Monday.
Gov. John Lynch last week signed into law the bill repealing the tax, which officials said hurt the racetrack and battered lottery sales after the state enacted it two years ago ...
May 22, 2011, 10:52 pm - Lottery News forum
Ct. Senate votes to collect delinquent taxes from lottery winnings
Connecticut state Senator Carlo Leone (D-Stamford) said Thursday that the Senate has approved a bill he co-sponsored that would deduct delinquent taxes from certain awards paid to Connecticut Lottery winners.
Allowing lottery winners who don't pay their taxes to collect prizes without contributing what they owe is unfair to everyone else who plays by the rules, said Senator Leone. Our state is in the middle of a fiscal crisis, and we are asking everyone to sacrifice in order to resolve it. N ...
May 15, 2011, 8:48 am - Lottery News forum
Puerto Rico turns store receipts into lottery tickets
Don't throw out that lunch receipt: It could be worth $1,000.
That's the idea behind a campaign to force Puerto Rico's many tiny markets, food stalls and other mom-and-pop businesses to collect sales tax.
Puerto Rico's Treasury Department is transforming receipts into lottery tickets, printing contest numbers on each receipt and holding weekly drawings for cash prizes ranging from $100 to $1,000. It also plans to have a monthly drawing for a car.
A pilot program started in December in t ...
Feb 8, 2011, 9:30 am - Lottery News forum
Lottery winner charged in tax conspiracy
In February 2008, Kendrick D. Francis won a 10,000-to-one bet on the Pennsylvania Lottery's Big 4 game for a payday of $532,000.
But, federal prosecutors in Delaware said, that apparently wasn't enough for Francis, a Wilmington resident, who then conspired with a convenience-store operator to hide his winnings and make it appear a number of other people had won instead to avoid federal taxes.
This month, the U.S. Attorney's Office for Delaware filed felony conspiracy and tax evasion charge ...
Jan 26, 2011, 4:01 pm - Lottery News forum
