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Can a non-profit Org. cash a JP ticket and NOT pay taxes?

Topic closed. 38 replies. Last post 5 years ago by mcginnin56.

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NY
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October 16, 2005
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Posted: May 27, 2012, 2:39 am - IP Logged

Ok, lets just say that I want to "avoid" paying taxes.

Say that I'm willing to keep only the 5-10%. I get $7.5 million and write one check for the remainder to a charitable entity that I will not benefit from in any way. 

Can I then "dribble" $200k per year to myself for the next 40 years without being scrutinized?

How do you plan on "dribbling" $200k per year from a charity that you won't benefit from in any way? That whole "not benefitting" thing is a pretty big part of the IRS' test, BTW.

Let's say you donate the $75 million that isn't withheld if you win $100 million cash. Then let's say it generates income at 6.667%, resulting in annual income of $5 million.  If you draw $200,000 as an annual salary you'll be taking 4% of the income . That would be comparable to the CEO of the Red Cross drawing a salary of about $140 million.

How could the IRS possibly think there's anything wrong with that?

    psykomo's avatar - animal shark.jpg

    United States
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    Posted: May 27, 2012, 1:55 pm - IP Logged

    I'm just wondering because I think it might be better to intentionally avoid paying taxes and just give myself a salary of a couple a hundred thousand a year. (plus living expenses of course)

    R316:

    Everyone should see a professional TAX PERSON if U have a tax matter U don't UNDERSTAND??????

    The TAX CODE books R over 15,000 thousand page's, MABY MORE by NOW!!!!!!!!!!!!!!!!!!!!!!!!!

    They (congress & politicians) ADD more & more each year. This will NEVER EVER>>>>CHANGE>>>>

    MORE tax codes & MORE $$$$$$$$$$$ of UR MONEY will solve GOVERMENT'$>>>PROBLEM'$$

    "Remember" URD giver and they RD>>>>>RECEIVER$$$$$$$$$

    LOL ON UR JACKPOT WIN$$$$$$$$$$$$

    Jack-in-the-Box


      United States
      Member #116268
      September 7, 2011
      20244 Posts
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      Posted: May 27, 2012, 3:06 pm - IP Logged

      How do you plan on "dribbling" $200k per year from a charity that you won't benefit from in any way? That whole "not benefitting" thing is a pretty big part of the IRS' test, BTW.

      Let's say you donate the $75 million that isn't withheld if you win $100 million cash. Then let's say it generates income at 6.667%, resulting in annual income of $5 million.  If you draw $200,000 as an annual salary you'll be taking 4% of the income . That would be comparable to the CEO of the Red Cross drawing a salary of about $140 million.

      How could the IRS possibly think there's anything wrong with that?

      I think you misunderstood my last post KY,

      I changed my approach and said I would become a charity give 92.5% of my winnings to some OTHER CHARITY to whom I am not associated and will not benefit from in any way.

      I will keep the remaining 7.5% and function as a charity (who has joyfully given $92.5 million) and pay myself $200,000, a year for the next 40 years.

      Will that work?

        haymaker's avatar - Lottery-012.jpg
        Egg Harbor twp.south Jersey shore
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        Posted: May 27, 2012, 3:20 pm - IP Logged

        Ronnie316,

        your thread has got me to thinking,

        anyone who is lucky enough to win a substancial JP,

        should have their taxes from recent years in order cause you'll likely be audited,

        since gov't so desperate for money.

        Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.


          United States
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          May 25, 2011
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          Posted: May 27, 2012, 3:22 pm - IP Logged

          R316:

          Everyone should see a professional TAX PERSON if U have a tax matter U don't UNDERSTAND??????

          The TAX CODE books R over 15,000 thousand page's, MABY MORE by NOW!!!!!!!!!!!!!!!!!!!!!!!!!

          They (congress & politicians) ADD more & more each year. This will NEVER EVER>>>>CHANGE>>>>

          MORE tax codes & MORE $$$$$$$$$$$ of UR MONEY will solve GOVERMENT'$>>>PROBLEM'$$

          "Remember" URD giver and they RD>>>>>RECEIVER$$$$$$$$$

          LOL ON UR JACKPOT WIN$$$$$$$$$$$$

          Jack-in-the-Box

          Tax code book only 15,000 pages? I thought with all the bureaucracy, there would have been far more pages than that!   Jester Laugh


            United States
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            Posted: May 27, 2012, 3:33 pm - IP Logged

            Ronnie316,

            your thread has got me to thinking,

            anyone who is lucky enough to win a substancial JP,

            should have their taxes from recent years in order cause you'll likely be audited,

            since gov't so desperate for money.

            That's true,

            but one of the benefits of being a low income person is that you have nothing to hide. lol.

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
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              Posted: May 27, 2012, 6:16 pm - IP Logged

              Ronnie316,

              A lot of people followed this fellow's advice- and wound up just like he did:

              From Wikipedia, one source of many:

              Irwin A. Schiff(born in February 24, 1928) is a prominent figure in the United States tax protester movement. Schiff is known for writing and promoting literature that claims the United States income tax is applied incorrectly. He has lost several civil cases against the federal government and has a record of multiple convictions for various federal tax crimes. Schiff is serving a 13-plus year sentence for tax crimes (with his location listed as the Terre Haute Federal Correctional Institution). His projected release date is October 7, 2016. Schiff is the father of stockbroker and former United States Senate candidate Peter Schiff.

              He used to have his guys go to Las Vegas and get in elevators with dealers going on break and tell them how thye could avoid paying taxes on their tips.

              So much for his advice.

              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.

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                NY
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                Posted: May 28, 2012, 1:12 am - IP Logged

                I think you misunderstood my last post KY,

                I changed my approach and said I would become a charity give 92.5% of my winnings to some OTHER CHARITY to whom I am not associated and will not benefit from in any way.

                I will keep the remaining 7.5% and function as a charity (who has joyfully given $92.5 million) and pay myself $200,000, a year for the next 40 years.

                Will that work?

                Now I've got no idea what you're talking about.  What does "function as a charity" mean? If you plan to simply make charitable donations from your income and principal how are you going to "pay" yourself?


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                  Posted: May 28, 2012, 11:19 am - IP Logged

                  I'm just wondering because I think it might be better to intentionally avoid paying taxes and just give myself a salary of a couple a hundred thousand a year. (plus living expenses of course)

                  Here's one more brain-fart for you Ronnie. Idea  Take your winning Mega-Jackpot as a lump sum. (you still need to pay the minimum 25% federal

                  and any applicable state tax). Now move yourself and all your assets into the Cayman Islands, and form an off shore account. Here your money

                  is protected from all other international countries.

                   

                  Now at your leisure, you are free to dole out whatever monies, to whatever charities of your choice, with no further tax obligation. Normally you

                  would still be on the hook for another 10% or so, for additional federal tax come the following year.  But Because of your new status as a Cayman

                  citizen, and your money is protected from any intruding hands from the Patriot,  your as free as a bird.    Cheers

                    Coin Toss's avatar - shape barbed.jpg
                    Zeta Reticuli Star System
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                    Posted: May 28, 2012, 11:35 am - IP Logged

                    mcginnin56,

                    I think a lot of those 'tax havens' aren't what they used to be. Consider the Swiss banks.

                    Ronnie316,

                    In re: to the topic title,

                    Can a non-profit Org. cash a JP ticket and NOT pay taxes?

                    wouldn't anyone or any entity cashing a lottery ticket be attempting to make a profit?

                    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.


                      United States
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                      May 25, 2011
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                      Posted: May 28, 2012, 11:40 am - IP Logged

                      mcginnin56,

                      I think a lot of those 'tax havens' aren't what they used to be. Consider the Swiss banks.

                      Ronnie316,

                      In re: to the topic title,

                      Can a non-profit Org. cash a JP ticket and NOT pay taxes?

                      wouldn't anyone or any entity cashing a lottery ticket be attempting to make a profit?

                      Hmmm, Switzerland sounds like a nice country too! They also make nifty watches and chocolate.  Whatta think Ronnie?  A  little cooler climate,

                      but better protection for your Lovies money.


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                        Posted: May 28, 2012, 11:41 am - IP Logged

                        Here's one more brain-fart for you Ronnie. Idea  Take your winning Mega-Jackpot as a lump sum. (you still need to pay the minimum 25% federal

                        and any applicable state tax). Now move yourself and all your assets into the Cayman Islands, and form an off shore account. Here your money

                        is protected from all other international countries.

                         

                        Now at your leisure, you are free to dole out whatever monies, to whatever charities of your choice, with no further tax obligation. Normally you

                        would still be on the hook for another 10% or so, for additional federal tax come the following year.  But Because of your new status as a Cayman

                        citizen, and your money is protected from any intruding hands from the Patriot,  your as free as a bird.    Cheers

                        Nice thinking mc but I can do that hereUS Flag without paying the 25% which is the topic of the thread. lol. All I need to do is one of the following.

                        1. Relief of the poor, the distressed, or the underprivileged,
                        2. Advancement of religion,
                        3. Advancement of education or science,
                        4. Erection or maintenance of public buildings, monuments, or works,
                        5. Lessening the burdens of government,
                        6. Lessening of neighborhood tensions,
                        7. Elimination of prejudice and discrimination,
                        8. Defense of human and civil rights secured by law, and
                        9. Combating community deterioration and juvenile delinquency.

                        Cited from Wikipedia: http://en.wikipedia.org/wiki/Charitable_organization

                          rdgrnr's avatar - walt
                          Way back up in them dadgum hills, son!
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                          Posted: May 28, 2012, 11:49 am - IP Logged

                          Nice thinking mc but I can do that hereUS Flag without paying the 25% which is the topic of the thread. lol. All I need to do is one of the following.

                          1. Relief of the poor, the distressed, or the underprivileged,
                          2. Advancement of religion,
                          3. Advancement of education or science,
                          4. Erection or maintenance of public buildings, monuments, or works,
                          5. Lessening the burdens of government,
                          6. Lessening of neighborhood tensions,
                          7. Elimination of prejudice and discrimination,
                          8. Defense of human and civil rights secured by law, and
                          9. Combating community deterioration and juvenile delinquency.

                          Cited from Wikipedia: http://en.wikipedia.org/wiki/Charitable_organization

                          I'll be voting for #5 this November.  Thumbs Up


                                                                       
                                               
                                                                   

                           

                           

                           

                           

                                                                                                                             

                          "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                      --Edmund Burke

                           

                           


                            United States
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                            Posted: May 28, 2012, 11:49 am - IP Logged

                            Nice thinking mc but I can do that hereUS Flag without paying the 25% which is the topic of the thread. lol. All I need to do is one of the following.

                            1. Relief of the poor, the distressed, or the underprivileged,
                            2. Advancement of religion,
                            3. Advancement of education or science,
                            4. Erection or maintenance of public buildings, monuments, or works,
                            5. Lessening the burdens of government,
                            6. Lessening of neighborhood tensions,
                            7. Elimination of prejudice and discrimination,
                            8. Defense of human and civil rights secured by law, and
                            9. Combating community deterioration and juvenile delinquency.

                            Cited from Wikipedia: http://en.wikipedia.org/wiki/Charitable_organization

                            Fair enough. Just though it would be a better deal than your getting only $200K per year. I know a lot of us here at LP are distressed, perhaps

                            by relieving these members, you will have qualified to not pay the 25% tax?


                              United States
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                              Posted: May 28, 2012, 11:55 am - IP Logged

                              Fair enough. Just though it would be a better deal than your getting only $200K per year. I know a lot of us here at LP are distressed, perhaps

                              by relieving these members, you will have qualified to not pay the 25% tax?

                              Qualifying is a fairly simple matter of filing all the correct paper work. I may even choose to call myself

                              "The Reverend Ronnie Jackson"