Millions of people play the lottery every day in hopes of being the next millionaire playing games like Power Ball, Mega Millions and Lotto. Smaller prizes pool games are also available plus those too hard to resist Scratch Cards.
Imagine scratching off the grand jackpot prize by matching three symbols for a cool $100,000. For most of us the thrill of winning and beating the unsurmountable odds that are against us is complete joy.
But for some it simply isn't enough and greed takes over as the winner plots and schemes to buck the system and avoid reporting it on their tax return.
Any prize money over $600 is required by law to request the Social Security number or tax identification number for state and federal withholdings.
In New Jersey a recent audit released indicates there is up to $890,000 in taxes from the lottery that has not been recovered.
Somewhere the system failed and dropped the ball by not verifying Social Security numbers on the claim forms. In the audit 680 unconfirmed information was reported along with 46 cases where a deceased person's Social Security and name was given.
The information given by the winner is also important to the state to identify any court ordered debts including unpaid child support and defaulting on student loans.
Officials were more thorough with any winnings that exceeded over $250,000 however not so with lesser amounts.
To better rectify the situation the lottery released a statement that a new computer system will be beneficial in detecting any issues.
Imagine scratching off the grand jackpot prize by matching three symbols for a cool $100,000. For most of us the thrill of winning and beating the unsurmountable odds that are against us is complete joy.
But for some it simply isn't enough and greed takes over as the winner plots and schemes to buck the system and avoid reporting it on their tax return.
Any prize money over $600 is required by law to request the Social Security number or tax identification number for state and federal withholdings.
In New Jersey a recent audit released indicates there is up to $890,000 in taxes from the lottery that has not been recovered.
Somewhere the system failed and dropped the ball by not verifying Social Security numbers on the claim forms. In the audit 680 unconfirmed information was reported along with 46 cases where a deceased person's Social Security and name was given.
The information given by the winner is also important to the state to identify any court ordered debts including unpaid child support and defaulting on student loans.
Officials were more thorough with any winnings that exceeded over $250,000 however not so with lesser amounts.
To better rectify the situation the lottery released a statement that a new computer system will be beneficial in detecting any issues.
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