Professional lottery player wins tax dispute

Comment #33

PERDUE — Wed, 16 Nov 2011 23:31:32 GMT

Wonderful story.

I learned a few things from this story.

I never would've thought to keep tickets from a decade ago.

WOW!! Great story Todd.

Comment #32

JezzVim — Wed, 09 Nov 2011 11:02:03 GMT

Psssssss.....He's a member of Lottery Post! Keep it under your hat

Comment #31

James1 — Sun, 06 Nov 2011 23:59:02 GMT

Yep you always find them at race tracks. sometimes ive had regular players approach me at the local store asking if i needed tickets cashed. not hard to find.

By the looks of it this guy is a professional ticket casher with an extended network of connections.

Comment #30

Stack47 — Sun, 06 Nov 2011 14:41:15 GMT

My question is this; How would one go about starting up a 10 percent business

On a much smaller scale, you'll find 10 percenters at almost every race track in the U.S. They are usually people on Social Security that cash tickets requiring a W2-G form and get 10% or more of the winnings. Their yearly income including the W2-Gs is probably less than $40,000, they pay no state taxes and apparently in Massachusetts, the state tax people keep a list of them.

Anyone can claim gambling losses up... [ More ]

Comment #29

kapla — Sun, 06 Nov 2011 11:09:55 GMT

Hummm, you sound like you speak from experience? Do we have a x-irs agent in our amist

Comment #28

Abdi — Sun, 06 Nov 2011 09:59:51 GMT

Waw! I wish I could also be lucky enough! it is every mans dream to cash every single lottery ticket he has bought! but I guess and also as he has admitted he must have spent more than he had won.

Comment #27

lucky6025 — Sun, 06 Nov 2011 08:54:38 GMT

There is no where on the back of these scratch tickets in Mass that states you must be present when buying these tickets.example I give tickets all the time as gifts.So for the state to prove he did not buy these tickets would be impossible.I keep losing tickets all the time to write off on large winning tickets also get statements from casino's on play for the year.Problem is IRS or State plays the game of investigating people several years after these winning and losing happen,hoping you have... [ More ]

Comment #26

JAP69 — Sun, 06 Nov 2011 06:09:20 GMT

Yep had the IRS audit me one time back in the 60s when I was self employed. Did not keep an accurate record of vehicle mileage to and from work. Nailed me for a whole $40.00 in additional taxes.

Comment #25

maringoman — Sun, 06 Nov 2011 02:53:45 GMT

Even if he is a ticket casher, which most likely he is, the state has no way of catching him. He probably wont cash a total strangers' winning tickets. And most people who go to him seem like the kind that do not like to deal with the state so they would not cooperate if they asked how come they were seen on the store camera buying the winning ticket and someone else going to the lottery commission to claim it.

I am glad that someone is winning this money because I sure am not. Megamillions 2... [ More ]

Comment #24

gocart1 — Sun, 06 Nov 2011 02:43:58 GMT

I can almost picture this happpening in real like ..the I.R.S. keeps telling my good friend that his wife is still alive even though she's died about fifteen years aready..And i was at the wake..

Comment #23

RJOh — Sun, 06 Nov 2011 02:34:29 GMT

My question is this; How would one go about starting up a 10 percent business

If you couldn't prove you were a professional lottery player you could end up paying regular taxes on the original winnings at the regular rate which is greater than 10%. I would think anyone cashing lottery tickets would keep at least 25% same as the state does when it cashes the tickets. After all the persons cashing lottery tickets that way is probably trying to avoid more than just paying taxes on his winnings.... [ More ]

Comment #22

GYM RICE — Sun, 06 Nov 2011 02:10:00 GMT

The State knows if they really go after guys like this, then they will be forced to go after soda/beer can collectors. And we all know what those people look like. It wouldn't be pretty. Don't be greety mr. state. Leave it alone.

Comment #21

truecritic — Sun, 06 Nov 2011 02:05:58 GMT

If a crook is a crook - then that is entirely different than someone taking legitimate deductions. If you could direct me to something more specific regarding Rubashkin, I'd be happy to reply. Although, with everything he (Rubashkin) was convicted on, it is hard to see the comparison between him and someone that obeyed the law and saved losing lottery tickets.

There are many that like to bend the tax laws for their own benefit - however, everyone knows that isn't legal. Business deductions th... [ More ]

Comment #20

TheGameGrl — Sun, 06 Nov 2011 01:19:45 GMT

I share your sentiments that no good comes from flat taxing.

I graciously disagree with your comments on the business tax write offs....Rubashkin was notorious for this for years . Now go do your homework or at best..consider it food for thought.

Comment #19

truecritic — Sat, 05 Nov 2011 23:48:32 GMT

time*treat...your post reminded me of this video:

@TheGameGrl

nor do I cheer on a state that creates rules and forgets that loopholes are abound .

While I agree with your post, I do wish you (and others) would not call legitimate business deductions, loopholes.

The word, Loopholes, creates the insinuation that business deductions should somehow be avoided. Flat taxes attempt to eliminate deductions - I've never seen a flat tax that I like or one that was fair. A maj... [ More ]

Comment #18

rdgrnr — Sat, 05 Nov 2011 23:22:52 GMT

The state would much rather go after someone without all those tickets and records to go through - too much work. They gave it a shot without doing the work and got shot down. Tabulating and cataloging bins full of losing lottery tickets at the office isn't a very glamorous task, much nicer to be out in your taxpayer provided car pretending to be working and eating out on the expense account.

They'll find some less prepared schmuck or innocent citizen and nail him to the wall to avenge this e... [ More ]

Comment #17

joshuacloak — Sat, 05 Nov 2011 23:17:06 GMT

this story is full of fail on state govt tax workers part

suspected no one trained these morons i see, suspect=guilty , their no Presumption of innocence in tax code word per say.

sadly the irs, and state level tax people, never, Ever use motto in their work of, innocent until proven guilty , their so assbackards, its a joke

they claim you did a crime,tax evade, and then its up to you to disprove their wild baseless claims. with facts and records. its a sick joke of united sta... [ More ]

Comment #16

TheGameGrl — Sat, 05 Nov 2011 22:48:53 GMT

This entire story shows guilt on both sides. THis so called professional gambler is definitely not winning directly from the gaming industry...its a red herring to be sure. THe problem with the state's allegations is they didnt THINK or ACT to charge him with the correct and factual acts he is committing on a daily basis.

Burden of proof lays with the state..and they blew it big time. I would have nailed him to produce his so called Winning Method that created all these wins.

He can say th... [ More ]

Comment #15

time*treat — Sat, 05 Nov 2011 21:35:32 GMT

What Taxachusetts should do is just go door-to-door saying Stick-em up! .

It would be more direct and in line with their attitude towards those who win more money than they play.

Comment #14

Kidzmom — Sat, 05 Nov 2011 19:59:36 GMT

Why is it that when a person consistently wins in whatever state they live in, why does the state or the lottery think they are lying or cheating?! Isn't this what the game was made for..to win it...Lol... OMG!

if the courts found in favor of the lottery player then enough said...

Comment #13

Jack-C — Sat, 05 Nov 2011 19:23:01 GMT

There's a member of LP that posts a lot of predictions each day and hits a lot each day. Now and then he will win $50,000 or so and everyone congratulates him (rightfully so), but look at his stats and you will see that month after month he loses about 60% of what he bets. So, the big wins look impressive until you look at how much was bet. The same is true in this story.

Comment #12

GiveFive — Sat, 05 Nov 2011 19:20:17 GMT

News articles like this one published here are why I enjoy The Lottery Post so much. Call me naive, but I've never heard of 10 percenters , so I learned a little something from reading the story.

For my part, I'm inclined to believe The Commonwealth of Massachusetts's theory of the guy being in the business of cashing other peoples winning tickets. Maybe he isnt, but if he is, then my hat is off to him for his entrenpeneurial creativity.

My question is this; How would one go about startin... [ More ]

Comment #11

RJOh — Sat, 05 Nov 2011 19:00:52 GMT

This story and another one (https://www.lotterypost.com/news/237882) give the impression that Massachusetts frown on high-stakes gamblers breaking even or making money playing their games.

Spending a lot of money playing lottery isn't dumb if you've done your home work, know the most likely outcome and can accept it, that's gambling. The gamblers in these stories spent more time strategizing than most people spend working a full time job so it was like a business for them.

Personally I fi... [ More ]

Comment #10

seanp — Sat, 05 Nov 2011 18:20:52 GMT

Youa made a pretty good point about that. I was upset that I spent a $1,000 dollar and win nothing in return, and a perso probably spent a $1 and win the whole thing. It is true that evrybody has different luck. Some people are lucky and other not so lucky. I took what I said back, and I'm going to play smarter by playing smaller amount.

Comment #9

seanp — Sat, 05 Nov 2011 18:16:39 GMT

You made a good point about that. Thanks and I took back what i said.

Comment #8

dpoly1 — Sat, 05 Nov 2011 17:30:20 GMT

I am just happy that Massachusetts lost!

The money grubbing, socialist worthless politicians from Massachusetts lost this time

Comment #7

nsv314 — Sat, 05 Nov 2011 17:22:21 GMT

I save my losing tickets in a manilla envelope. That way, if I win a big prize during that tax year, I could use them to prove my gambling losses. I toss the envelope at the end of each tax year once I don't need the proof any more.

(Learned that trick from my father-in-law who bets the horse races as a side hobby and occasionally hits a decent sized prize.

Comment #6

L J1 — Sat, 05 Nov 2011 16:32:56 GMT

An AWSOME story!

I'd love to read more of the kind.

Hats of to you Mr. Jones for a job well done.

Hey... just as the story says, Mr. Jones claims he had all of the proof.

Perhaps the Tax Man had better things to do other than investigate the busy work.

Comment #5

Todd — Sat, 05 Nov 2011 16:20:26 GMT

You either did not fully read the story, or else you don't understand it.

In order to think it's made up , you would also have to think that the entire Massachusetts court system, the IRS, and the Massachusetts department of taxation are also trying to make up something about a lottery winner.

Comment #4

RJOh — Sat, 05 Nov 2011 15:37:55 GMT

Just because you spent $1000 on tickets for the $254.4 PowerBall drawing and only won $220 (https://www.lotterypost.com/news/238584/2274608) doesn't mean all professional gamblers suffer the same fate.

It just shows that when you are gambling in games where the odds of winning are in the millions only gambling a $1000 is like bringing a pea shooter to a gun fight.

It may be true that he was just cashing tickets for other players but the state didn't spend much effort trying to prove it.... [ More ]

Comment #3

EXMECHANIC — Sat, 05 Nov 2011 15:34:11 GMT

Wouldn't it be possible to track the locations and time of sale of the ticket purchases and deduce if it is him actually buying the tickets. And if this is all true, this guy might have a bit of a gambling addiction.

Comment #2

seanp — Sat, 05 Nov 2011 15:06:00 GMT

This story is not true. There is no way someone gonna win 10,000 times. This news is made up as a way to get people play the lottery. Thanks God I have my secret sources.

Comment #1

Slick Nick — Sat, 05 Nov 2011 14:19:22 GMT

Interesting story Todd. I wonder if this will happen in other states

Professional lottery player wins tax dispute

Lottery Post — Sat, 05 Nov 2011 13:45:54 GMT

Big winnings, tiny taxes

Several times a week, Clarance W. Jones does something most people can only dream of: He cashes in bunches of winning lottery tickets.

And even better, he has found a way to pay barely any taxes on the massive take.

Over the past decade, the 73-year-old from Lynn has redeemed more than 10,000 tickets from the state lottery more than any other person worth a total of more than $18 million.

He has also long fought efforts by the state to collect considerable ta... [ More ]