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Question about back taxes

Topic closed. 6 replies. Last post 5 years ago by PERDUE.

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ArtVandalay's avatar - 3237774708 dd3351ee2c_m.jpg
Arizona
United States
Member #52803
June 10, 2007
88 Posts
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Posted: September 19, 2009, 5:22 pm - IP Logged

I'm just curious about a predicament that some lottery winners could be in.  Suppose that you won a big lottery like the MegaMillions or the PowerBall and you owed back taxes.  It's my understanding that when you present the winning ticket, the Lottery Commision waits about two weeks while a background check is done on the winner, to see if the winner owes any back taxes or outstanding student loans or child support arrearages.  If the Lottery Commission does find that the winner owes any money concerning back taxes or student loans or child support, do they just take it out of the winnings?

Money can't buy you happiness, but I sure could afford the misery that it brings! Wink

    Dollar419's avatar - Lottery-050.jpg
    Santa Ana
    United States
    Member #71159
    February 20, 2009
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    Posted: September 19, 2009, 5:36 pm - IP Logged

    THE ANSWER IS SIMPLE: YES, YES & YES...They will find a way to make you pay back taxes, child support, student loans no matter how you earn or win your money--it a collective debt owe and you will not find a way out of it, if you won the lottery.

      mjwinsmith's avatar - moon

      United States
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      June 8, 2002
      13892 Posts
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      Posted: September 19, 2009, 6:26 pm - IP Logged

      I am curious myself, if you owed any of the debts mentioned and won the Lottery, I would think that those would be the first things you would want to "Clean" up anyway before you started to collect on your winnings.

      As a matter of fact I would want to clean up or pay back my credit card debts or any other account where some company is making a buck off of me.

       >Michael

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        germantown md
        United States
        Member #64543
        August 31, 2008
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        Posted: September 19, 2009, 6:56 pm - IP Logged

        I am curious myself, if you owed any of the debts mentioned and won the Lottery, I would think that those would be the first things you would want to "Clean" up anyway before you started to collect on your winnings.

        As a matter of fact I would want to clean up or pay back my credit card debts or any other account where some company is making a buck off of me.

         >Michael

        i agree ,on the other end if none of your debts mentioned above are up to date,they will do that for you. probably a fine print u dont see,part of the deal i guess.

        if the debt is mere change compare to the millions won then personally thanks for saving me the trouble.

          justxploring's avatar - villiarna
          Wandering Aimlessly
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          November 5, 2005
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          Posted: September 20, 2009, 7:32 pm - IP Logged

          I'm not certain if all taxes owed are investigated. In Florida a criminal background check is run and a check on your driver's license.  However, if you owe taxes in another state, I'm not completely sure they'd deduct the money.  I'm also not sure they check on money owed to the IRS, just the State.  (and anyone confirm this?) However, you can be sure the IRS will find you! 

          Not paying child support is a crime, so I don't know what difference it makes if they deduct it.  It's a legal and moral obligation.  However, I'm not so sure they check on out-of-state offenders regarding child support or student loans, back property tax, etc.

          By the way, I know everyone here is talking about millions, but it doesn't matter what you win.  If you win $5,000 and owe it in speeding & parking tickets, they'll keep it!  I believe if someone has a judgment against you, they will deduct that amount as well.  After all, a judgment is a legal order to pay a debt.

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            Milwaukee, WI
            United States
            Member #3131
            December 27, 2003
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            Posted: September 22, 2009, 8:07 pm - IP Logged

            When I was collecting my $1,590 from Illinois, somebody was there trying to collect from a $1,000 scratch ticket.  They had to wait for their money....

            Whether they pay it or I would pay it wouldn't matter. Just a fast way to get the bills payed.      Unless you would have somebody else to collect the money under their name.  But you would still owe the money....

            I would imagine that money owed to another state wouldn't be collected, but I might be wrong...

            MarkP

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              Monkey Butt, USA
              United States
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              August 23, 2007
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              Posted: September 27, 2009, 11:44 am - IP Logged

              I'm just curious about a predicament that some lottery winners could be in.  Suppose that you won a big lottery like the MegaMillions or the PowerBall and you owed back taxes.  It's my understanding that when you present the winning ticket, the Lottery Commision waits about two weeks while a background check is done on the winner, to see if the winner owes any back taxes or outstanding student loans or child support arrearages.  If the Lottery Commission does find that the winner owes any money concerning back taxes or student loans or child support, do they just take it out of the winnings?

              Earlier this year I was granted the opportunity to travel to the local lottery commission to cash in a ticket. Since I owe the IRS I asked if my winnings would be going to pay my IRS bill. I was told that the TX lottery commission only check to see if you are indebted to the state not the federal govt. So as long as I do not owe the state in any shape for or fashion or owe child support then I will get all of my money. I admit that the rules may be different when I win a jackpot.