|Posted: July 23, 2004, 10:29 pm - IP Logged|
Here is something I got in the email concerning lotto pools. Actually, this was from two different lottery officials. Hope this helps....
1. Most states only issue a single check. If you split a ticket and win, you should form a partnership, call the IRS for a tax number, before cashing the jackpot winning ticket. The state would then pay the partnership, the partnership would split the money and report that split to the IRS.
2. The Lottery only allows one individual to claim a prize unless it's
being claimed by a Lottery club. The club members split the winnings
and each receive a separate W-2 form in January for tax purposes. The
following is instructions on forming a Lottery club.
Lottery clubs are required to register with the IRS to get a tax ID
number and there are federal requirements involved in that process, but
there are no state statutes that deal specifically with Lottery clubs.
Lottery club members are on their own to establish partnership rules,
whether those be written or verbal. Effective October 1, 2003, the IRS
allows clubs to apply for a federal tax ID number over the telephone.
The toll free numbers is 1-800-829-4933. The FEIN # is given directly
over-the-phone and the confirming paperwork is mailed to the Club