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Taxes

Topic closed. 5 replies. Last post 10 years ago by Coin Toss.

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amsoly41's avatar - ron paul_gold_standard.jpg
Tennessee
United States
Member #24912
October 29, 2005
94 Posts
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Posted: February 8, 2007, 8:17 am - IP Logged

What category does winnings on the Lottery fall under?

Earned Income Tax?

Windfall Tax?

Gift Tax?

Other Tax?

I found a documentary on YouTube or Google Video the other day

Called  A m e r i c a n  F r e e d o m  t o  F a s c i s m .

It claims that the Income tax is illegal.

 

I have not found any thing on snopes about it. (Urban Legends)

 

I don't think most people are willing to go to prison over this.

If it is true.

The IRS does not mess around right or wrong.

I thought this kind of interesting.

I fall under the category of

Render therefore unto Caesar the things which be Caesar's.

Sun Smiley

    Badger's avatar - adu50016 NorthAmericanBadger.jpg
    Wisconsin
    United States
    Member #1303
    March 27, 2003
    1508 Posts
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    Posted: February 8, 2007, 8:30 am - IP Logged

    What category does winnings on the Lottery fall under?

    Earned Income Tax?

    Windfall Tax?

    Gift Tax?

    Other Tax?

    I found a documentary on YouTube or Google Video the other day

    Called  A m e r i c a n  F r e e d o m  t o  F a s c i s m .

    It claims that the Income tax is illegal.

     

    I have not found any thing on snopes about it. (Urban Legends)

     

    I don't think most people are willing to go to prison over this.

    If it is true.

    The IRS does not mess around right or wrong.

    I thought this kind of interesting.

    I fall under the category of

    Render therefore unto Caesar the things which be Caesar's.

    Sun Smiley

    Note that I am not a tax accountant.  However, I believe that it comes under "Earned income".

    As far as income tax being illegal, even if it was, or is, (this stance has been going on for decades now) those that have tried not paying taxes under that argument have found themselves spending much time in small prison cells looking at the walls.

    You see, whether something is legal or not, the only thing that counts is who's holding the power. And if the govt says something is legal, then it doesn't matter what it is, because they hold the reins and the whip.

    ============

    How can you tell if a politician is lying?

    Answer: His lips are moving.

      SirMetro's avatar - center
      East of Atlanta
      United States
      Member #6191
      August 11, 2004
      1389 Posts
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      Posted: February 8, 2007, 8:31 am - IP Logged

      There is actually a line item on the Tax Forms for Lottery/Gambling/Prize Income and if I am not mistaken, it is treated as Normal Income Tax so that it can be taxed at the highest possible tax rate allowed. Get a copy of the latest income tax forms and you will be able to see where it is located. I think it is a few lines under Income.In regards to the video, that is something that generally circulates at least once a year around tax season. Just keep this in mind, it was the IRS who took out the MOB, not the police. Do not think you will win anything if you want to be stupid. Unless that is, you plan on leaving the country and never coming back. To my knowledge, there is no statute of limitations on how long the IRS can wait to collect back taxes from you. There is also not any real limit to the penalty the IRS can hit you with for tax fraud either.

      If I remember right, the basic concept is that at one point in time, taxes were voluntary. I do not remember when, but eventually, it was made mandatory and most of the clear loop holes were removed. What that video talks about is the short and brief period of time (although, more then 100 years ago) when taxes were actually illegal. For the sad individuals who promote that video and haven't quiet caught up with the times, well, let's just say that odds are, they don't have a really permanent address at the moment.

        amsoly41's avatar - ron paul_gold_standard.jpg
        Tennessee
        United States
        Member #24912
        October 29, 2005
        94 Posts
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        Posted: February 8, 2007, 8:58 am - IP Logged

        I am not in any way saying that one should not pay his or her taxes.

        I pay mine and will continue to.

        I do not want to spend the rest of my life in a jail cell.

        I just thought this video was interesting.

         

        I wonder how many people fall for this and end up in prison.

         

        I should have had a disclaimer stating that I am not a tax expert.

        Nor a tax consultant so If you choose to evade taxes it is your prison sentence.

        Wink

          Avatar
          California
          United States
          Member #46824
          October 1, 2006
          270 Posts
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          Posted: February 8, 2007, 9:56 am - IP Logged

          The other item to consider is that if your winning ticket is worth over $5000 there will be federal and state withholding taken from your winnings.  From a federal standpoint 25% will be withheld.  Based on a current maximum tax rate of 35% that means you already have paid 70% of your federal taxes.  If you are subject to a state tax the percentage is probably even higher.

          Tough to not pay taxes when they already have the money.  Also would it even be worth the risk if you have already paid the vast majority of the tax?

            Coin Toss's avatar - shape barbed.jpg
            Zeta Reticuli Star System
            United States
            Member #30470
            January 17, 2006
            10351 Posts
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            Posted: February 8, 2007, 10:08 am - IP Logged

            amsoly41

            "I found a documentary on YouTube or Google Video the other day

            Called  A m e r i c a n  F r e e d o m  t o  F a s c i s m .

            It claims that the Income tax is illegal."

            The income tax started as a temporary tax to help finance WW I.

            This video has been going around and people are jumping, or wanting to jump on this idea, DON'T DO IT.

            Just remember: the difference between tax avoidance and tax evasion?  15 to 20 years!

            There was a guy in the 1980's that went around the country teaching this "The income tax is illegal" stuff, wrote a book about it, too.  It was Irwin Schiff - who went to jail for tax evasion.

            Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

            Lep

            There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.