Pa. man pleads guilty in bizarre lottery tax case

Comment #73

mjwinsmith — Wed, 10 Oct 2012 16:33:41 GMT

I think it would be so stupid to put this guy in jail, guess who pays for the jail time, taxpayers (You and I).

Now if they calculated the cost to keep him in jail and add that amount to the interest and penalties he owes on the taxable amount and made him pay that too, now that would be justice!.

Comment #72

Scientistman — Mon, 01 Oct 2012 11:47:04 GMT

Lets not forget that this country was built on the revenue of the lottery dating back hundreds of years.

Comment #71

Scientistman — Mon, 01 Oct 2012 11:42:51 GMT

In Washington State taxes are only taken out if your win is over $5000

So when you go cash your ticket in as I have they tell you that you are responsible to pay the taxes on the money and they hand you a check for the full amount.

Comment #70

Artist77 — Sun, 30 Sep 2012 23:25:08 GMT

lol I knowed something too. All lottery winners are shape shifting reptiles.

Comment #69

rdgrnr — Sun, 30 Sep 2012 22:40:57 GMT

Yeah, I remember that guy.

He knowed something too.

Comment #68

Original Bey — Sun, 30 Sep 2012 22:25:24 GMT

Reminds me of the guy who wagered $700 on 2912 after dreaming about his mother. His mom and my mom shares the same D.O.B. Needless to say he and I are not on speaking terms after that.

Comment #67

RedStang — Sat, 29 Sep 2012 23:45:51 GMT

What about the peeps that signed the ticket. They must of testified to get off easy.

Comment #66

Coin Toss — Sat, 29 Sep 2012 23:26:53 GMT

What is now the Federal Income Tax started as a temporary tax to finance America's involvement in WW I.

Comment #65

whiteballz — Sat, 29 Sep 2012 16:47:09 GMT

True fact: George Washington, Thomas Jefferson and the other founding fathers didn't pay income tax. Income tax is a relatively new annoyance for American citizens. I'm not excusing Sherman Friend for what he did but paying taxes has little to do with patriotism.

Comment #64

jamella724 — Sat, 29 Sep 2012 14:05:25 GMT

I feel so sad about this, but the man should be punished for what he have done. Just remember that paying taxes is our obligation as a citizen. Every one is obliged to do that.

Comment #63

OldSchoolPa — Sat, 29 Sep 2012 11:14:12 GMT

Yes, that is the Hope the I.R.S. is banking on and the Change we citizens don't want to move Forward which will take us backward. Just cut the spending dude, Mr. President

Comment #62

Coin Toss — Sat, 29 Sep 2012 05:05:56 GMT

geerod2001,

That's the kind of stuff Irwin Schiff used to teach.

Look him up and see what you find.

The difference between tax avoidance and tax evasion?

About 5 to 20 years.

As for the guy in the OP, you think he would have learned something when he won the car.

Comment #61

Ronnie316 — Sat, 29 Sep 2012 02:32:54 GMT

Funny you should mention this geerod2001,

because the courts determined that federal reserve notes are lawful money in 1974, which upheld court rulings from 1874......... Feel free to read about it for yourself........

http://www.federalreserve.gov/faqs/money_15197.htm

Comment #60

geerod2001 — Sat, 29 Sep 2012 02:17:59 GMT

Dear Lottery Players;

You can avoid paying any/all income taxes on your winnings by knowing how to endorse(sign) the lottery check before depositing into an account.

Make a Demand for Lawful Money on the back of the check, eliminating the use of Federal Reserve Notes,which eliminates the IRS tax liability on YOU the winner !!!!!!

There's plenty of information out there on this subject matter.........READ and LEARN people.

Comment #59

whiteballz — Sat, 29 Sep 2012 02:02:15 GMT

Jill I don't know what you mean when you wrote, mitigate the additional tax owed. Currently, the marginal tax rate for income over $388,350 is 35% and nothing in the world is going to change that.

Tax deductions, like giving money to charity, would lower your effective tax rate but the money you give away will not lower your tax liability dollar for dollar.

In other words, if your marginal tax rate is 35%, every dollar you gave to charity would only lower your tax liability by 35 cents. So... [ More ]

Comment #58

Cletu$2 — Sat, 29 Sep 2012 00:38:49 GMT

Your rate is 35%,too.The lottery will withhold 25% right off the top,but on April 15th you will still owe the feds another 10 %.Thats a fact

Comment #57

mcginnin56 — Sat, 29 Sep 2012 00:13:25 GMT

There you go!

I've got my eggs ready, I'll be the first to donate.

Comment #56

JADELottery — Sat, 29 Sep 2012 00:10:36 GMT

Make the Government a donation based entity.

Comment #55

Seattlejohn — Fri, 28 Sep 2012 23:36:20 GMT

What. An. Idiot. You should have just paid your taxes upfront, dumbass, and enjoyed your windfall with no stress or worry; now, you're facing jail possibly losing a big portion of it to penalties interest. Moron

Comment #54

Stack47 — Fri, 28 Sep 2012 23:34:11 GMT

That explains why he got 50 cent tickets because taxes must still be paid on $2500 in winnings; that and the fact he knew lots of 10 percenters . It made it easier for him to make sure none of the 10 percenters kept all the money and had it been $1 tickets, it would be more difficult to find someone to cash it.

In the two states where I've had $1 straight winners, it was very easy to collect the winnings. Depending on how far they live from lottery authorized bank, Ohio players can get paid u... [ More ]

Comment #53

Ronnie316 — Fri, 28 Sep 2012 23:06:56 GMT

I think I'm seeing the light...... It sounds like a rich guy playing games to pay nothing in taxes

PAYS MORE IN TAXES

than the average non-tax-paying American and the rich guys secretary put together.

Comment #52

luckyshoes — Fri, 28 Sep 2012 23:06:32 GMT

I live 20 miles from there- lol I bet I know the place where he played- maybe even those he recruited to cash in his tickets. And regarding Mr. Cupp, he was my lawyer once and needless to say.... NEVER AGAIN

Comment #51

mcginnin56 — Fri, 28 Sep 2012 23:01:40 GMT

Why pay any taxes.

Just kick in a dozen eggs from our chickens, one gallon of milk from our cows, and a little moonshine to uncle Sam once a month.

That's really all it takes to keep this country running anyways.

Comment #50

Todd — Fri, 28 Sep 2012 22:51:51 GMT

It would be rare for someone to pay 35%. They would have to have no deductions at all.

For example, Mitt Romney gave more than $4 million of his investment income last year to charity -- a huge percentage of his income. You do not typically pay tax on money that you gave away to charity, so his overall tax percentage would be less than it would be if he didn't give away anything.

So, in other words, if you won an $8 million jackpot, and you gave away half of it to charity ($4 million), the... [ More ]

Comment #49

mcginnin56 — Fri, 28 Sep 2012 22:44:49 GMT

Sorry I missed all the fun here.

Sounds like when Friend's friends started recruiting other warm bodies to do his dirty work, is when everything became compromised.

Nothin' like a juicy topic of tax evasion, to bring out the warm humanity out of people.

Comment #48

JADELottery — Fri, 28 Sep 2012 22:43:50 GMT

Want my Vote?

Make Lottery Winnings Tax Free.

Comment #47

Ronnie316 — Fri, 28 Sep 2012 22:16:26 GMT

Are you conceding that your tax rate on regular income over $388,350. is 35

Comment #46

Wooddrive — Fri, 28 Sep 2012 22:16:04 GMT

In Pa everyone plays 50 cent tickets on big4. That way the retailer can pay immediately. anything over and you have wait for the check in the mail. Good luck, thanks for the conversation.

Comment #45

rdgrnr — Fri, 28 Sep 2012 22:05:16 GMT

But for the life of me..50 cent tickets? $104.00 on 1 number.

Folks round here would say he knowed somethin'.

But then he got greedy.

Comment #44

Wooddrive — Fri, 28 Sep 2012 22:03:17 GMT

Nothing really bothers me. I'm too laid back. i just wish I had the money to invest so I can pay the low capital gains tax and let the money work for me.

Comment #43

Ronnie316 — Fri, 28 Sep 2012 22:01:22 GMT

I would be willing to bet he played that number 1000 times.

Comment #42

Littleoldlady — Fri, 28 Sep 2012 21:59:55 GMT

He should have just paid and been done with it. He could have invested a portion of his winnings and still be making money. Nice hit. But for the life of me..50 cent tickets? $104.00 on 1 number. I know folks who put up to 20 bucks on 1 number..

Comment #41

Ronnie316 — Fri, 28 Sep 2012 21:58:04 GMT

Is that whats bothering you..... the game we know the rich plays

Comment #40

Wooddrive — Fri, 28 Sep 2012 21:57:55 GMT

thank you, Jill. Yes, that 10% isn't due until the next file date. Like I said variables, timing is crucial, let the winnings work in your favor.

Comment #39

Todd — Fri, 28 Sep 2012 21:56:23 GMT

Dude, Romney (or ANYONE) would pay that rate on their INVESTMENT INCOME. Winning the lottery is REGULAR INCOME.

If you take some of that lottery money and INVEST it, then your INVESTMENT INCOME will only be taxed at the INVESTMENT INCOME rate.

Get it?

(I don't think you know the game the rich play , because there is no game, other than getting taxed twice: once when they first earn money, and then a second time when they invest their money and get investment income based on risking that... [ More ]

Comment #38

Ronnie316 — Fri, 28 Sep 2012 21:55:51 GMT

Your trying to say people are responsible for understanding and obeying the law??? Interesting

Comment #37

Wooddrive — Fri, 28 Sep 2012 21:54:22 GMT

hey Ronnie, you must understand that Federal tax is flexible. There are variables in everything we do, its called choice. Look at Romney, for example. why 13% and not less... or more. I'm not condoning breaking the law, more like playing the game we know the rich plays.

Comment #36

Jill34786 — Fri, 28 Sep 2012 21:52:58 GMT

It appears many folks are confused at what the true Federal tax rate is on Lottery winnings. The 25% Federal tax that gets witheld on major Jackpots is just the initial down payment. The top tier Federal tax rate is currently 35% and is set to go up in 2013. The winner is still responsible for the other 10% but he/she can mitigate the additional tax owed by working with an experienced CPA and tax attorney.

This is the number one reason why so many Jackpot winners get in trouble because they a... [ More ]

Comment #35

rdgrnr — Fri, 28 Sep 2012 21:50:37 GMT

Numbnuts.

Well son, if the shoe fits...

Comment #34

Wooddrive — Fri, 28 Sep 2012 21:48:46 GMT

numbnuts? is that appalachia oracle speak? ...fade away...or do you want to tell your story on the couch.

Comment #33

Ronnie316 — Fri, 28 Sep 2012 21:45:36 GMT

LOL.... The old you used it sarcastically but I didn't reasoning??? Way to funny, Woody...

Until you get out of paying the 35% I think you lost the argument..... lol. lol. lol.

Comment #32

rdgrnr — Fri, 28 Sep 2012 21:45:05 GMT

You still here, numbnuts?

I thought I told you to run along a while ago?

Now beat it, hick boy. Go whittle on a stick or somethin'.

Comment #31

rdgrnr — Fri, 28 Sep 2012 21:40:48 GMT

I was ruminatin' on the same thing, Todd.

They all the time wanna sock it to the rich guy until they're the rich guy.

Then they want new rules.

Comment #30

Wooddrive — Fri, 28 Sep 2012 21:39:17 GMT

where I'm from buddy isn't derogatory. Pal isn't either, but you used it sarcastically and called me hick. Info alert, last time i checked Delaware County, Pa is no where near hickville. You are so clueless, oracle my Azz, sounds more like sour grapes because you had a hard life. Stop holding grudges and enjoy your twilight years... please fade away...

Comment #29

Todd — Fri, 28 Sep 2012 21:36:31 GMT

It would be ironic if this guy was one of those people running around saying, The rich need to pay their fair share.

I'd say there's a good possibility. It's always someone else who should pay.

Comment #28

rdgrnr — Fri, 28 Sep 2012 21:31:20 GMT

You started with the names, son.

Remember? You called me buddy so I called you pal. Go look.

So why don't you just blow it out yer @$$, hick boy

Comment #27

Ronnie316 — Fri, 28 Sep 2012 21:29:41 GMT

Anything over $388,350. pays 35% tax.

http://taxes.about.com/od/Federal-Income-Taxes/qt/Tax-Rates-For-The-2012-Tax-Year.htm

Comment #26

rdgrnr — Fri, 28 Sep 2012 21:26:46 GMT

Well, thank you, Artist.

I just might commence to writin' one now

Comment #25

Ronnie316 — Fri, 28 Sep 2012 21:25:25 GMT

You are too funny Woody, the base tax rate depends on how much you win.......

Comment #24

Ronnie316 — Fri, 28 Sep 2012 21:23:00 GMT

I say buy 208 of them right away....... And don't forget to save your losing tickets for tax purposes.

Comment #23

Wooddrive — Fri, 28 Sep 2012 21:21:51 GMT

just like I thought. got nothing to do in your little old cabin so start an arguement without any facts and start calling names. take your negativity and shove it like the furry tale rats you eat, old man.

Comment #22

rdgrnr — Fri, 28 Sep 2012 21:16:52 GMT

No you're from some little hick town of 400 hicks on the MD line.

You wouldn't make it in the Apps, boy.

Run along now, numbnuts, I'm through with ya.

Comment #21

qutgnt — Fri, 28 Sep 2012 21:13:40 GMT

The fact we have to pay taxes on lottery winnings and gambling winnings in this country is disgusting. We are playing a game that is taxed at upwards of 50% to begin with. This backward type of thinking is why we are 15 trillion in the hole as a country. Instead of incentivizing people to play and to churn more handle it is an absolute money grab at every turn. Let us face it. 99.9% of people lose money gambling whether it be horses, casinos, or lotteries. But the goverment knows that most peopl... [ More ]

Comment #20

Artist77 — Fri, 28 Sep 2012 21:12:13 GMT

I would buy a book by Ridge.

Comment #19

Wooddrive — Fri, 28 Sep 2012 21:11:22 GMT

I don't know where you get your info from. But I ain't from appalachia, pal. Don't be accusing someone without knowing the facts, pal. ...maybe I should tell you to stop smokin and drinking that appalachia mountain funny stuff... pal.

Comment #18

rdgrnr — Fri, 28 Sep 2012 21:10:48 GMT

Not until you've paid the utmost farthing.

Seeking tax shelters to avoid government confiscation is now unpatriotic according to Obama and Reid.

Ask Romney.

We're supposed to be proud to give the government all they want of what's ours.

And I know you wouldn't want to be unpatriotic.

Comment #17

Ronnie316 — Fri, 28 Sep 2012 21:01:37 GMT

Im putting mine in a Foundation, like Bill Gates does.

Comment #16

rdgrnr — Fri, 28 Sep 2012 21:00:53 GMT

The Good Lord willin' and the creek don't rise.

Comment #15

rdgrnr — Fri, 28 Sep 2012 20:59:13 GMT

If you win a jackpot, you will pay 35%, pal.

Unless you cheat on your taxes.

In which case there may be a Cabinet Position for you.

Comment #14

Artist77 — Fri, 28 Sep 2012 20:33:16 GMT

The current president.

Comment #13

Wooddrive — Fri, 28 Sep 2012 20:22:56 GMT

your rate is 35%, mine is 25% buddy.

Comment #12

sully16 — Fri, 28 Sep 2012 20:17:06 GMT

Hello Friend, said the cell mate.

Comment #11

rdgrnr — Fri, 28 Sep 2012 19:58:56 GMT

It'll come out of your jackpot no matter if you're rich or poor.

Comment #10

Ronnie316 — Fri, 28 Sep 2012 19:56:18 GMT

Yeah but thats only on the rich.............. Right

Comment #9

rdgrnr — Fri, 28 Sep 2012 19:55:00 GMT

The rate is 35% and the President wants to make it 45% after the first of the year.

Comment #8

Ronnie316 — Fri, 28 Sep 2012 19:54:07 GMT

Its my guess that this guy is wealthy...... remember when the IRS showed up at Willie Nelsons house

Comment #7

Wooddrive — Fri, 28 Sep 2012 19:33:06 GMT

Wow, wish I won more than 500Grand. I'll gladly pay 25% fed tax and keep 375Grand for myself. Better than not winning. Could have sold the strategy and made more money. If there was one. Dropping $104 on one number takes some balls...

Comment #6

helpmewin — Fri, 28 Sep 2012 18:44:51 GMT

Wow, i thought taxes is already taken out as soon as you Win

Comment #5

Set4life — Fri, 28 Sep 2012 18:26:17 GMT

snip what a win! Tim Geithner cheated on his taxes and got a job as Sec. Of treasury lol

This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

Comment #4

RJOh — Fri, 28 Sep 2012 18:02:45 GMT

Sounds like he didn't try hard enough. He should had set up his system as some kind of investment scheme rather than income, that way he wouldn't have had to pay any more taxes than he paid his friends to cash those tickets for him. I'm sure he could have found some lawyers like Romney used to get his tax rate to 13% or less.

Comment #3

brina5eva — Fri, 28 Sep 2012 17:50:39 GMT

i know right.

i probably would have tried the same thing. i have played .50 straights before of cash 4 so that i wouldn't have to pay the taxes if i won i still do. i gotta give it to give him for trying. i don't blame him ,i want all my money too. but i havent went to the extreme as 208 tickets. wow. but if he did have a system. he could have gotten away with it, he just went about it all wrong concentrating on that one number like that. he could have play ten and this number . 50 straight,... [ More ]

Comment #2

RJOh — Fri, 28 Sep 2012 17:36:22 GMT

Friend's attorney, John Cupp Jr., declined to comment about how often Friend plays the lottery or whether he was using a system to place his bets.

Sounds like they not only wanted to punish him and get the unpaid taxes, but someone wanted to get his system too.

Comment #1

nanaimo — Fri, 28 Sep 2012 17:32:40 GMT

mr.friend tried his best efforts NOT to pay taxes and now he is caught he should pay the penalty and serve the law ful time in jail he has earned the jail time

Pa. man pleads guilty in bizarre lottery tax case

Lottery Post — Fri, 28 Sep 2012 16:45:52 GMT

A 70-year-old Pennsylvania man faces up to a year and half in prison for having more than 40 people cash in lottery tickets worth $520,000 so he could avoid paying federal income tax on the winnings.

Sherman Friend, of McClellandtown, faces a sentence of 12 to 18 months in federal prison when he is sentenced Feb. 15 on the tax evasion charge he pleaded guilty to Friday before U.S. District Judge Arthur Schwab in Pittsburgh.

Assistant U.S. Attorney Nelson Cohen said Friend won big when he b... [ More ]