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Lottery-winning couple 'defrauded' by tax business

Sep 6, 2016, 11:44 am

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Illinois LotteryIllinois 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

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NBC5

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24 comments. Last comment 5 years ago by One-Day.
Page 1 of 2
Raven62's avatar - binary
25
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!

    dr65's avatar - black panther.jpg
    50
    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.

      Avatar
      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.

        TheMeatman2005's avatar - lightening
        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!  Patriot

          Reggie Numbers's avatar - pyramid

          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.

          Check The Chop!!!

            music*'s avatar - DiscoBallGlowing
            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.

            Dance

             "We are all in this together!" 

              TheMeatman2005's avatar - lightening
              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.

              Dance

              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!  Patriot

                Groppo's avatar - cat anm.gif

                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.
                  Groppo's avatar - cat anm.gif

                  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.
                    Avatar
                    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.

                      LottoAce's avatar - WWI Flying_Ace.gif
                      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"

                        Avatar

                        United States
                        Member #34930
                        March 9, 2006
                        209 Posts
                        Offline

                        Only requires a little initiative to make ballpark calculations!

                          dr65's avatar - black panther.jpg
                          50
                          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.

                            Avatar
                            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!