Connecticut to audit lottery winners for back taxes

Dec 20, 2011, 7:42 am (20 comments)

Connecticut Lottery

After successfully targeting deadbeat parents, the state of Connecticut is going after tax evaders' lottery winnings.

Beginning Dec. 31, a new law will take effect requiring the Connecticut Lottery Corporation to deduct delinquent taxes, crosschecked with the Department of Revenue Services, from any claim of $5,000 or more.

"If someone is lucky enough to win a lottery prize and they also owe back taxes, it is reasonable to collect those taxes at that time," co-sponsor Rep. Gerald Fox, D-Stamford, said.

The new law — passed unanimously by the General Assembly earlier this year and signed by Gov. Dannel P. Malloy — initially would have gone into effect in October.

Fox said extra time was needed for lottery and DRS officials to work out the details.

The proposal was based on another state program, begun in 2004, that crosschecks lottery winners with a database of individuals owing child support.

According to the Lottery Corporation, that effort has, over the past seven years, recouped $1.5 million and made going after tax delinquents "a natural extension."

Both laws were pursued by Anthony Martino, a support enforcement officer in Stamford for the Judicial Department.

In testimony submitted in February to the Legislature, Martino explained the rationale for starting with $5,000 winners.

"It is impossible to check all winners of any ticket ... The Lottery Commission will cash smaller winnings at any lottery dealer, and it will cash winning tickets ranging from $600 to $4,999 at one of three stations in the state," Martino wrote. "However, all winning tickets of $5,000 or more must be cashed at the Lottery Headquarters. These are the winners that are checked against a database of obligors owing child support."

Martino, at the time, also suggested legislators consider going a step further and turning their attention to visitors to the state's Indian gaming casinos who win big while simultaneously failing to pay their back taxes.

Fox said that matter has not been discussed.

Under state law, lottery employees are forbidden from making public any tax information received from the DRS.

CT Post

Comments

PERDUE

Looks like the state of Connecticut is getting greedy again.

Instead of trying to find ways to empty the pockets of the lottery winners and casino winners, why not eliminate some of the dead weight they've picked up over the years?

Yes, people should pay their child support and their taxes. No argument here.

But to start putting laws on the books like this is just the starting point to other laws that will eventually make it impossible for you to purchase a bottle of water without the government's permission and a background check.

dpoly1's avatardpoly1

A very good reason not to live in Connecticut !!!!!!!!!!!!!!!!!!!!!!!!!!!

Greedy Politicians should be put in jail for violating their fiduciary responsibilities by spending money like they can just print it  !!!!!!!!!!!!!!!!!!!!!!

dpoly1's avatardpoly1

On a positive note, I am preparing to win about $73,840,000 after 35% taxes tonite!  Dance Green with money is the only way to go green. & Wealth is not greed, it is opportunity !

 

Anyone that doesn't think that $39,790,000 in taxes is enough is cordially invited to move to the Paradise of North Korea ! Or the Socialist State of Connecticut !

Set4life's avatarSet4life

Im not suprised, american tax payers need to pay for this phony afgan war.  Then off to another country lol.

RJOh's avatarRJOh

I always thought all states with lotteries already had such rules in place and that was the reason some stores would cash winners larger than $600 for a price.

maringoman's avatarmaringoman

Unless some guys are reading another article, what I read seems to make perfect sense.

Checking the lottery winner's child support payment history before handing over the check is saving time and energy.

If dead beats don't support their offsprings the rest of us law abiding citizens are forced to do it. I hate that.

JonnyBgood07's avatarJonnyBgood07

...always amazes me how fast they could enact laws dealing with"getting" monies whether this or outright taxation,but when the people as a whole want something it takes yearsConfused... if at all.

Should've been a no brainer anyhow since deadbeat dads/moms and such just drain the welfare spicket outright dry here.How they've not done this up till now is sheer idiocy.Bad enough you have have to wait a lifetime to get a check cut to you when you're there because of the time it takes to see if you have warrants or other outstanding sh*t.

Also it is common knowledge from the people i've worked with that they just get their parents or grandparents to go to the lottery to collect the winnings anyhow.

Grovel's avatarGrovel

Can someone explain to me how it is wrong to collect money that someone was supposed to pay but cheated the state out of it.

coplyr86

Like RJoh, I assumed all states did this. I seem to recall reading an article here on LP a few weeks back about Massachussetts going after a lottery winner who'd won millions. They assumed he was a "10 percenter": someone who cashes tickets for others who are trying to avoid paying child support or back taxes. So apparently MA does this as well. Does anyone know if all states do it? Or which ones do and don't?

haymaker's avatarhaymaker

Quote: Originally posted by coplyr86 on Dec 20, 2011

Like RJoh, I assumed all states did this. I seem to recall reading an article here on LP a few weeks back about Massachussetts going after a lottery winner who'd won millions. They assumed he was a "10 percenter": someone who cashes tickets for others who are trying to avoid paying child support or back taxes. So apparently MA does this as well. Does anyone know if all states do it? Or which ones do and don't?

not sure about other states but,nothing gets by in jersey.

dpoly1's avatardpoly1

Quote: Originally posted by Grovel on Dec 20, 2011

Can someone explain to me how it is wrong to collect money that someone was supposed to pay but cheated the state out of it.

Today I learned that Connecticut is the worst State for overall taxes. That means that they spend money like water. That is why I say that they can go pound salt !   Smash

rdgrnr's avatarrdgrnr

Quote: Originally posted by Grovel on Dec 20, 2011

Can someone explain to me how it is wrong to collect money that someone was supposed to pay but cheated the state out of it.

Well God forbid someone withheld money that the government could have pissed away or made available for politicians to steal.

Heavens to Murgatroid! Exit stage left!

Grovel's avatarGrovel

Quote: Originally posted by rdgrnr on Dec 20, 2011

Well God forbid someone withheld money that the government could have pissed away or made available for politicians to steal.

Heavens to Murgatroid! Exit stage left!

So you can break a law just because you do not agree with it?

CTNY's avatarCTNY

Quote: Originally posted by PERDUE on Dec 20, 2011

Looks like the state of Connecticut is getting greedy again.

Instead of trying to find ways to empty the pockets of the lottery winners and casino winners, why not eliminate some of the dead weight they've picked up over the years?

Yes, people should pay their child support and their taxes. No argument here.

But to start putting laws on the books like this is just the starting point to other laws that will eventually make it impossible for you to purchase a bottle of water without the government's permission and a background check.

Greedy Again? Try Always was...

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