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Eastern Time (GMT-5:00) | Lottery-winning couple 'defrauded' by tax business Illinois Lottery: Lottery-winning couple 'defrauded' by tax businessRating: Includes video report
A husband and wife who won big off a 2014 Illinois Lottery scratch-off say they don't want what happened to them to happen to anyone else. Rafael Borsas says he and his wife, who make less than $80,000 a year, went to a nearby Key Express Tax service to have their taxes prepared for them. Instead of being charged $160 for a "1040 single family house owners" service, they were overcharged nearly $2,000: $300 for income tax and $1,700 for a gambling bonus. The commissioner of the Department of Businesses Affairs and Consumer protection said the couple's 2015 refund was about $92,000, which raised red flags for the IRS who claimed the couple underpaid on their taxes. "There is no such thing as a gambling bonus to a tax preparer," said Maria Guerralapacek, commissioner of the Department of Consumer Affairs and Business Protection. "We right away issued citations to the business," Guerralapacek said. "Because in fact, the business didn't follow the law set out for tax preparers." Guerralapacek said it was obvious the couple was being defrauded and offers a warning to taxpayers. She said having a city license doesn't mean a tax preparer is qualified or to do so because they are not regulated by the federal government. Borsas says he'll never go back to the Key Express Tax, part of an industry Guerralapacek says is "ripe with fraud." When the business was reached by phone, the person in charge was not available. The city is pursuing legal action against it for multiple reasons, including restitution for the victims. VIDEO: Watch the report 
NBC5
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New Jersey United States Member #17842 June 28, 2005 148548 Posts Offline | You can't always find an Honest Professional! A mind once stretched by a new idea never returns to its original dimensions!
Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.
Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.
The best way to learn is to never stop being a student! | | |
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Pennsylvania United States Member #74094 May 2, 2009 24135 Posts Offline | Lottery bonus? They had to pay? I guess if they were told they were getting $92,000 back, that seemed like peanuts to pay. I don't blame them, I blame the scavenger who sat across from them telling them those lies. | | |
Simpsonville United States Member #163182 January 22, 2015 2760 Posts Offline | Lottery bonus? They had to pay? I guess if they were told they were getting $92,000 back, that seemed like peanuts to pay. I don't blame them, I blame the scavenger who sat across from them telling them those lies. that is terrible. Glad that flea bitten company getting publicity...bad publicity. It would be so karma like if the IRS would do the right thing and investigate/audit that company. | | |
Brooklyn, NY United States Member #169716 October 29, 2015 1537 Posts Offline | First, congrats on the win. Second, shame on the tax preparer that took advantage of his couple. I hope they get what's coming to them. And it won't be a bonus! The Meatman 🥩🍗🍔🍖🍤🌭 “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers Winning happens in a flash, Like A Bolt Of Lightning!  | | |
United States Member #54770 August 29, 2007 133 Posts Online | Smh...It's sad that the harder it takes to make your money. You have those working just as hard to swindle you out of it. | | |
Fresno, California United States Member #157849 August 2, 2014 3959 Posts Offline | Winners should go to www.USAMEGA.com and get a ball park figure for how much they still owe. They will understand the 25% automatically taken out before they get a winner's check. Then all they need is to find a good CPA, Accountant, or Enrolled agent and do the math for the 14.6% they still owe. When you are penny wise but pound foolish you will pay. Winners can find www.lotterypost.com too. This is a good case of Illinois tax payers getting their money's worth from the civil servants. Good job. 
"We are all in this together!" | | |
Brooklyn, NY United States Member #169716 October 29, 2015 1537 Posts Offline | Winners should go to www.USAMEGA.com and get a ball park figure for how much they still owe. They will understand the 25% automatically taken out before they get a winner's check. Then all they need is to find a good CPA, Accountant, or Enrolled agent and do the math for the 14.6% they still owe. When you are penny wise but pound foolish you will pay. Winners can find www.lotterypost.com too. This is a good case of Illinois tax payers getting their money's worth from the civil servants. Good job.
Not everyone is as savvy as the members of Lottery Post. We are up on all of the taxes and other pertinent lottery info. Most casual players don't know what we know. Too bad. The Meatman 🥩🍗🍔🍖🍤🌭 “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers Winning happens in a flash, Like A Bolt Of Lightning! | | |
United States Member #162624 January 7, 2015 780 Posts Offline | Smh...It's sad that the harder it takes to make your money. You have those working just as hard to swindle you out of it. . Yes, Mr./Ms. Reggie Numbers,
I couldn't have said it better myself. Mr. Groppo - Don't chase the numbers you play.
- Play only numbers you've already played, plus however many random picks.
- But, ALWAYS the regular numbers you play. This will make you a winner, not a chaser.
(so far, though, I've yet to win any significant lotto prize)
- Oh, but always know where your tickets are, as well as your ticket's deadline.
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United States Member #162624 January 7, 2015 780 Posts Offline | You can't always find an Honest Professional! . No, Doggonit!, and it's exactly the problem with this hateful, crumbling planet of ours. Groppo - Don't chase the numbers you play.
- Play only numbers you've already played, plus however many random picks.
- But, ALWAYS the regular numbers you play. This will make you a winner, not a chaser.
(so far, though, I've yet to win any significant lotto prize)
- Oh, but always know where your tickets are, as well as your ticket's deadline.
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NY United States Member #23834 October 16, 2005 4500 Posts Offline | "We are up on all of the taxes and other pertinent lottery info." We're clearly not reading the same posts. There are plenty of people here who post things that demonstrate that they don't have a clue about even the simplest aspects of tax law. The story isn't entirely clear about all the details, but the video indicates that they were charged $1700 for filing a W2G form, which they wouldn't have needed if they hadn't won anything from gambling. Plenty of preparers use the same basic method of charging for additional forms, but not many would try to charge that much for a form that takes just a few minutes. As for a "gambling bonus", I guess that's the bonus the tax prep company was trying to pay themselves. | | |
N.C. United States Member #56003 October 28, 2007 877 Posts Offline | "We are up on all of the taxes and other pertinent lottery info." We're clearly not reading the same posts. There are plenty of people here who post things that demonstrate that they don't have a clue about even the simplest aspects of tax law. The story isn't entirely clear about all the details, but the video indicates that they were charged $1700 for filing a W2G form, which they wouldn't have needed if they hadn't won anything from gambling. Plenty of preparers use the same basic method of charging for additional forms, but not many would try to charge that much for a form that takes just a few minutes. As for a "gambling bonus", I guess that's the bonus the tax prep company was trying to pay themselves. "There are plenty of people here who post things that demonstrate that they don't have a clue about even the simplest aspects of tax law."
you are correct.
I honestly am not a tax expert either. what I do know is that there are so many changes that occur from year to year,
it is hard to keep track of them all. I would'nt even try to file taxes in a situation like that untill I spoke to half a dozen reputible accountants that
are tied to major firms. the last thing I'm going to do is go to some B.S. company out of Wazoo, or BF Egypt.
most of the IRS workers, are not tax experts either. they are just trained civil servants who look for "red flags" in citizens tax reports.
My question is...was there any point in time where the couple had a gut feeling
that there wasn't something quite right about all of this? "know your limitations, but excede your expectations" | | |
United States Member #34930 March 9, 2006 209 Posts Offline | Only requires a little initiative to make ballpark calculations! | | |
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Pennsylvania United States Member #74094 May 2, 2009 24135 Posts Offline | "We are up on all of the taxes and other pertinent lottery info." We're clearly not reading the same posts. There are plenty of people here who post things that demonstrate that they don't have a clue about even the simplest aspects of tax law. The story isn't entirely clear about all the details, but the video indicates that they were charged $1700 for filing a W2G form, which they wouldn't have needed if they hadn't won anything from gambling. Plenty of preparers use the same basic method of charging for additional forms, but not many would try to charge that much for a form that takes just a few minutes. As for a "gambling bonus", I guess that's the bonus the tax prep company was trying to pay themselves. On their receipt it was written behind w2g - gambling bonus...the commissioner interviewed said there is no such thing as a gambling bonus. I think most anyone looking at and listening to what the preparer was telling them and writing on their receipt would have questioned why it was written as gambling bonus. The man seems to be hispanic with an accent and sorry to say, some people like that are viewed as easily taken advantage of by crooks like this tax service. The language barrier or lack of understanding of nuances can make a person dealing with a 'business' trust what they are being told. I'm glad they came forward to remind everyone there are rats out there that are getting rich a little bit at a time. Being in business doesn't mean they have your best interests in mind. Don't be afraid to upset the apple cart. There is no polite when it comes to your money. | | |
New York, N.Y. United States Member #141053 April 3, 2013 31 Posts Offline | The tax preparer like he Godfather tells the lottery winner: 'I'll make you an offer you can't refuse! | | |
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